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Trump ally Milei wins a stunning election victory and promises more reforms in Argentina
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Trump ally Milei wins a stunning election victory and promises more reforms in Argentina

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Argentine President Javier Milei has hailed his party’s runaway victory in the midterm elections as a “turning point” for the country and vowed to continue his agenda of downsizing the state and deregulating the economy.
Milei’s small party La Libertad Avanza (LLA) recovered from a series of setbacks to win 40.84 percent of votes cast for members of Congress, leaving the opposition far behind in elections closely watched by investors.
“Today we have reached a turning point, today the building of a great Argentina begins,” the 55-year-old president told supporters at a victory party in Buenos Aires.
He promised to continue the reform path with what he said would be “the most reformist congress in Argentina’s history.”

Half of the seats in the Chamber of Deputies and a third of the seats in the Senate were up for grabs.

Milei said LLA has more than tripled its number of seats, with 101 seats in the House of Commons, the Chamber of Deputies (from 37), and 20 seats in the Senate, from six.

‘Forward, not backward’

The center-left Peronist movement, which was in power for much of Argentina’s post-war history, was in second place with 31.64 percent.
“Many more Argentinians want to move forward than backward,” Milei said of the opposition’s demise.
The election was the first national test of Milei’s support since he came to power two years ago on his promise to revive Argentina’s long-ailing economy through a series of reforms.

The run-up to the vote was marked by a run on the national currency, the peso, which forced Milei to seek a bailout from US President Donald Trump, a close ally.

The US promised an unprecedented aid package of $40 billion, but the aid was accompanied by a warning from Trump to Argentines that he would not “be generous” if the elections did not go in Milei’s favor.
Trump congratulated Milei on his party’s election victory.
“Congratulations to President Javier Milei on his landslide victory in Argentina. He is doing a great job! Our trust in him was justified by the people of Argentina,” Trump wrote on his Truth Social platform during an Asia tour.

The Argentine public is wary of past economic crises

Gustavo Cordoba, the director of Argentina’s Zuban Cordoba polling agency, said he was surprised by Milei’s display and thought it reflected concerns about the possibility of a repeat of the economic crises of previous governments.

“Many people were willing to give the government another chance,” he said. “We will see how much time Argentine society gives the Argentine government. But the triumph is indisputable and indisputable.”

Cordoba said Milei’s government appears to have secured a third of the seats in the Chamber of Deputies to prevent future presidential vetoes from being overturned by Congress.
In the past few months, the opposition has overturned several Milei vetoes on spending bills that it said threatened the country’s budget balance.
Marcelo Garcia, US director of risk consultancy Horizon Engage, said: “The result is better than even the most optimistic Milei proponents had hoped.”

“With this outcome, Milei will be able to easily defend his decrees and vetoes in Congress,” Garcia said, adding that allies will have more incentives to support a winning president.

‘Monday is just another day’

Before the election, several of Milei’s voters had spoken to Agence France-Presse about their disappointment with his leadership, especially the corruption scandals allegedly involving members of his inner circle.
But they continued to oppose the Peronist movement, whose figurehead, former President Cristina Kirchner, is under house arrest after being convicted of corruption.
At 67.9 percent, turnout in national elections was the lowest in four decades, reflecting disillusionment with the entire political class.

The most surprising results were seen in Buenos Aires province, a Peronist stronghold, where LLA has bounced back from defeat by the Peronists in last month’s local elections to a toss-up.

Adriana Cotoneo, a 69-year-old retiree who votes in Buenos Aires, told AFP she supported Milei’s party “not because I believe it is the best option, but because I know clearly who I want to leave with”.
Former TV pundit Milei, 55, has cut tens of thousands of public sector jobs, frozen public works, cut health care, education and pensions and presided over a major deregulation since taking office in December 2023.
His reforms were blamed for initially plunging millions of Argentines deeper into poverty. However, they did slow inflation by two-thirds – to the relief of many – although this came at the expense of faltering economic growth, consumption and production.
Foreign investors have been impressed by the government’s ability to significantly reduce monthly inflation from 12.8 percent before Milei’s inauguration to 2.1 percent last month, while running a budget surplus and implementing major deregulation measures.

But investors started dumping pesos last month on concerns about the economy and support for Milei. Then Trump stepped in to support his closest Latin American ally.

Javier Milei’s reforms helped slow inflation in Argentina by two-thirds. Source: AFP / Juan Mabromata

The US Treasury Department has intervened in the market several times in recent weeks by buying pesos to keep the market afloat.

Before the election, expectations were high that the government might depreciate or devalue the peso, which was widely considered too strong, immediately after the election.
But when asked about the possibility, Economy Secretary Luis Caputo said: “No.”
“Monday is just another day, there is no change in the economic program or the band system,” he said, referring to the peso-dollar exchange rate band the government established in April.

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