Javier Milei’s Party Wins Argentina Midterms, Strengthening His Austerity Agenda and Ties With Trump
Argentine President Javier Milei’s party secures a sweeping midterm victory, reinforcing his austerity reforms and boosting his alliance with Donald Trump amid economic recovery and public skepticism.
A Resounding Political Victory in Buenos Aires
Argentine President Javier Milei achieved a major political triumph in the nation’s midterm legislative elections, solidifying his mandate to pursue deep economic reforms despite growing domestic unease. The strong showing for Milei’s La Libertad Avanza (Freedom Advances) party underscored voter willingness to endure short-term hardship in exchange for long-term stability — and sent a clear message that Argentina is not ready to abandon his radical austerity program.
In a jubilant speech delivered from a hotel in Buenos Aires, Milei declared, “Argentines showed that they don’t want to return to the model of failure.” His statement was both a victory cry and a direct rebuke to his political opponents, particularly the Peronist coalition that has dominated Argentine politics for decades.
A Turning Point for Argentina’s Economic Future
The midterm results were more than a domestic political milestone — they were a referendum on Milei’s controversial economic overhaul. Since taking office, the libertarian leader has implemented one of the most aggressive austerity agendas in modern Latin American history: slashing subsidies, dismantling protectionist regulations, and cutting public-sector spending to restore fiscal discipline.
While his policies have drawn fierce criticism from unions and working-class Argentines struggling with inflation and unemployment, they have also begun delivering measurable results. Inflation has slowed dramatically, dropping from 12.8% before Milei’s inauguration to 2.1% last month — a remarkable turnaround in a country long plagued by runaway prices.
His administration also achieved a fiscal surplus for the first time in years and has pursued sweeping deregulation measures designed to attract foreign investment and modernize Argentina’s rigid economy.
Support From Washington: The Trump Connection
Milei’s success is being closely watched in Washington, where his economic strategy has found a powerful ally — former U.S. President Donald Trump. During Trump’s administration, the United States played a key role in facilitating a $40 billion bailout package for Argentina.
The deal included a $20 billion currency swap and a proposed $20 billion debt investment facility aimed at stabilizing Argentina’s reserves and supporting Milei’s monetary reforms. Though the White House declined to comment on the latest election results, observers believe that Milei’s victory will strengthen ties between Buenos Aires and Trump’s political circle, particularly on trade and anti-globalist economic policies.
Fear of Economic Collapse May Have Driven Votes
According to analysts, the surprisingly strong performance of Milei’s party may have been driven by public fear of returning to the economic instability of previous governments.
Gustavo Córdoba, director of the Argentine polling firm Zuban Córdoba, noted that despite growing discontent over austerity, many voters see Milei’s program as a painful but necessary path to recovery.
“Many people were willing to give the government another chance,” Córdoba explained. “There’s a deep fear of going back to the crises that destroyed savings and livelihoods in the past. This victory, though controversial, is undeniable.”
Securing Power in Congress
Milei’s electoral gains translate into real political power. His coalition is expected to control roughly one-third of the seats in the Chamber of Deputies, the lower house of Congress — enough to block any attempts to overturn his presidential vetoes.
This is a significant development, as opposition lawmakers had previously overturned several of his vetoes on spending bills he argued would threaten Argentina’s fiscal balance. With the new numbers, Milei’s administration will be far better positioned to defend his decrees and maintain budget discipline.
“This result is even better than the most optimistic Milei supporters expected,” said Marcelo García, Americas director of Horizon Engage, a risk consultancy. “It gives him the leverage to pass reforms and solidify his leadership.”
A Call for Cooperation
Interestingly, Milei used his victory speech not only to celebrate but also to extend an olive branch. “There are dozens of deputies and senators from other parties with whom we can reach basic agreements,” he told supporters.
This shift in tone — from combative to conciliatory — could signal a more pragmatic phase in Milei’s leadership. Political analysts suggest that after months of governing through executive orders and economic decrees, the president may now focus on building legislative alliances to accelerate his reform agenda.
Buenos Aires: The Heart of Milei’s Comeback
Nowhere was Milei’s victory more symbolic than in Buenos Aires province, a traditional stronghold of the Peronist movement. La Libertad Avanza captured 41.5% of the vote, edging out the Peronist coalition’s 40.8%, according to official results.
The win marked a dramatic reversal from Milei’s earlier struggles in Buenos Aires during the congressional elections last September. For decades, the province has been synonymous with populist politics and state-driven economics — making this result a clear sign that Argentina’s political landscape is shifting.
Nationwide, Milei’s coalition expanded its representation in the House of Deputies from 37 seats to 64, cementing its position as a formidable force in Argentine politics.
The Vote and the Numbers
Half of Argentina’s 127 lower-house seats and a third of the 24-member Senate were up for grabs. The Peronist opposition remains the largest minority in both chambers, but Milei’s bloc now commands the strategic power to shape — and block — key legislation.
Political observers had suggested that winning more than 35% of the national vote would be a victory for the president’s young administration. Surpassing 40% in several regions exceeded even those expectations.
The Price of Reform: Public Fatigue and Low Turnout
Despite the triumph, Milei faces growing public fatigue. The deep spending cuts, while stabilizing the economy, have reduced subsidies for energy, transport, and basic goods — directly impacting millions of working-class families.
“His approval ratings have dipped as people feel the pinch,” said María Laura Tagina, a political scientist at the Universidad Nacional de San Martín. “But his opponents are fragmented, and many disillusioned voters simply stayed home.”
Indeed, voter turnout was just 68%, the lowest in over a decade. Analysts suggest that this abstention rate may have worked in Milei’s favor, as frustrated moderates opted out rather than voting against him.
Market Reactions: Optimism and Caution
Financial markets are expected to respond positively to Milei’s strengthened mandate. Analysts anticipate a rally in Argentine bonds and stocks as investors gain confidence that the government can push forward with its economic liberalization agenda.
At the same time, some economists predict a controlled devaluation of the peso, which they say has been kept artificially high to contain inflation. Such a move could boost exports but also risk reigniting price pressures.
Still, most investors view the results as a green light for reform. “Markets like certainty,” said Daniel Gómez, an economist at JP Securities. “Milei’s win means Argentina stays on the path of fiscal discipline and deregulation — and that’s what foreign capital wants to hear.”
Trump’s Influence on Argentina’s Recovery
The connection between Javier Milei and Donald Trump extends beyond ideology. Both leaders share a populist, anti-establishment message centered on economic nationalism, deregulation, and political disruption.
Trump’s backing has been instrumental in rallying confidence among U.S. investors and lending institutions. American policymakers see Argentina’s turnaround as a potential model for free-market reform in Latin America.
“The Trump administration views Milei as a test case,” said political risk analyst Sofía Moreno. “If his austerity plan works — if inflation stays low and growth returns — it could redefine how Washington supports struggling economies in the region.”
Austerity vs. Populism: The Core Debate
While Milei’s win is a political victory, it also deepens the national debate between austerity and populism.
His critics argue that the cost of his policies falls disproportionately on the poor and middle class. Transport subsidies have been slashed, public-sector salaries frozen, and social welfare reduced. At the same time, deregulation and privatization have favored large corporations and foreign investors.
“Milei’s economic reforms have restored stability, but at a human cost,” said labor leader Diego Torres. “You can’t balance the books on the backs of ordinary Argentines.”
Milei counters that such sacrifices are temporary — necessary steps toward long-term prosperity. “We inherited a bankrupt country,” he told supporters. “There is no easy way out, only the right way.”
A Cabinet Shake-Up on the Horizon
In the wake of the election, Milei hinted at an impending cabinet reshuffle, possibly bringing members of the centrist PRO party — led by former President Mauricio Macri — into his government.
Such a move could help him consolidate power and stabilize relations with Congress. It would also signal a pragmatic pivot, showing that Milei is willing to work with moderate allies to ensure policy continuity.
Regional Implications: A Shift in Latin America
Milei’s victory reverberates beyond Argentina. Across Latin America, a wave of left-leaning governments — from Lula da Silva’s Brazil to Petro’s Colombia — has challenged austerity politics. Milei’s success bucks that trend, proving that voters can still embrace pro-market reforms if they deliver results.
Analysts believe Argentina’s turnaround could influence neighboring economies grappling with similar fiscal crises. If inflation continues to fall and growth returns, Milei’s model could inspire reforms elsewhere in the region.
The Road Ahead: Challenges and Expectations
Despite the celebratory mood, Milei faces daunting challenges. Argentina’s poverty rate remains above 40%, unemployment is rising, and confidence in public institutions is fragile.
The success of his second half in office will depend on his ability to balance economic stabilization with social protection — a task easier said than done.
For now, however, the midterm results give him breathing room. With greater control in Congress and support from international investors, Milei has the tools to press forward. The question is whether public patience will last long enough for the benefits of reform to materialize.
A Message of Defiance and Hope
As he addressed cheering supporters in Buenos Aires, Milei’s message was clear: the path to recovery may be painful, but it’s working.
“Today, Argentina has shown that we can rebuild our destiny with freedom, courage, and sacrifice,” he said. “This victory belongs to every citizen who refused to give up on our future.”
The crowd erupted in chants of “Libertad!” — a symbolic echo of Milei’s political movement and a reminder of his enduring appeal among Argentines hungry for change.
Conclusion: A Mandate Reinforced
The midterm elections have cemented Javier Milei’s place as one of Argentina’s most influential leaders in decades. His sweeping victory not only secures his reform agenda at home but also strengthens his standing abroad as a bold experiment in market-driven recovery.
While challenges remain — from social unrest to international scrutiny — Milei now commands both the votes and the confidence needed to push forward. For a nation long defined by cycles of crisis, his victory marks a moment of stability, however fragile.
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