Argentina: Milei's Party Secures Surprise Win In Midterms

Milei’s Party Secures Surprise Win in Midterms Argentina Argentine President Javier Milei won a decisive victory in Sunday’s midterm elections, tightening his control over Congress and bolstering his free-market overhaul with backing from Washington, CBS News reported. With nearly all votes counted, Milei’s right-wing La Libertad Avanza party exceeded projections by securing about 41 percent of the national vote, defeating the once-dominant Peronist opposition, which received around 31 percent. The results showed his party and allies gained 14 new seats in the upper house of the legislature and 64 in the lower house. While still short of a full majority, the vote’s outcome surprised many observers who had described the midterms as a referendum on Milei, elected in 2023 on promises to boost Argentina’s chronic economic malaise. A self-described “anarcho-capitalist,” the libertarian leader imposed a series of “shock therapy” policies that devalued the peso, cut energy subsidies, and saw tens of thousands of public employees lose their jobs. The policies briefly stabilized Argentina’s finances, producing its first balanced budget in more than a decade and reducing inflation from 200 percent two years ago to 32 percent now, the Wall Street Journal added. Even so, his administration has been plagued by a series of scandals and mass protests against his policies that cast doubt on his popularity ahead of the vote. But Sunday’s results now give Milei effective veto power over opposition legislation and solidify his hold on Argentina’s austerity program, which has drawn both popular anger and investor praise. Milei thanked supporters, saying the vote was “the confirmation of the mandate we assumed in 2023.” Praise also poured from Milei’s key ally, US President Donald Trump, who had tied billions in US financial aid to the outcome of the vote. The Trump administration had conditioned a $20 billion currency-swap deal with Argentina’s central bank and another $20 billion in private loans on Milei’s electoral success, after warning it would withdraw support if the Peronists prevailed. Markets reacted positively on Monday, with Argentine bonds and stocks surging and analysts describing the results as a relief for investors who had doubted Milei’s political endurance. Observers noted, however, that the domestic strain remains severe: Inflation continues to erode real wages, and more than 250,000 jobs have been lost since Milei came to power, with at least 18,000 businesses closing, CBS noted. Axel Kicillof, the Peronist governor of Buenos Aires province, warned Milei was ignoring “the suffering of many Argentines,” adding that US-backed loans “will do nothing to help ordinary people.”