Argentine President Javier Milei’s party secured a decisive victory in the midterm legislative elections, granting him renewed authority to continue his sweeping economic overhaul. The result marks a significant political comeback for Milei, whose popularity had been slipping amid growing public frustration over deep spending cuts and austerity measures. It also comes as a relief to the United States, particularly President Donald Trump’s administration, which had faced criticism for extending a large financial bailout to Argentina during Milei’s reforms.
The outcome demonstrated that despite economic hardship, many Argentines fear returning to the instability and financial crises that have plagued the country for decades. Milei’s austerity policies, which include slashing subsidies and deregulating major sectors, have sharply reduced inflation and restored some investor confidence. Addressing a crowd of supporters in Buenos Aires, Milei declared that the results proved Argentines “do not want to return to the model of failure,” signaling his intent to push forward with his fiscal agenda.
Analysts said the strong showing reflected both the public’s desire for stability and its cautious optimism about the reforms’ long-term effects. Pollster Gustavo Cordoba remarked that voters seemed willing to give the government another chance, noting that the victory was “unquestionable.” With his party now controlling about one-third of the Chamber of Deputies, Milei has enough influence to block attempts by Congress to overturn presidential vetoes. Experts believe this outcome gives him greater legislative stability and reduces the risk of future political gridlock.
Internationally, Milei’s win has been seen as a positive signal to markets and foreign investors. His administration has already reduced monthly inflation from 12.8 percent to just over 2 percent while achieving a fiscal surplus for the first time in years. To support his reforms, the Trump administration extended a financial assistance package worth $40 billion, including a currency swap and a debt investment facility. Though the White House has not officially commented on the election, observers say Washington is likely to view Milei’s victory as validation of its support.
Milei’s party, La Libertad Avanza, achieved particularly strong results in Buenos Aires province, winning 41.5 percent of the vote compared to 40.8 percent for the Peronist coalition. The result marks a political shift in a region historically dominated by Peronism and boosts Milei’s national standing. His party also expanded its representation in the lower house from 37 to 64 seats, strengthening its influence across both chambers of Congress.
The elections saw low voter turnout, around 68 percent, the lowest in more than a decade. Analysts believe this may have benefited Milei, as disillusioned opposition voters chose to stay home. Despite recent controversies and fatigue over austerity measures, Milei’s message of discipline and reform appears to have resonated with enough voters to secure a clear mandate. Following the results, he hinted at a cabinet reshuffle and possible collaboration with members of the centrist PRO party led by former President Mauricio Macri.
Markets are expected to react positively to the outcome, with many analysts predicting a rally in bonds and equities. Milei’s strengthened position will likely allow him to advance structural reforms more aggressively, though some experts warn that a devaluation of the peso may be unavoidable in the coming months. For now, Milei’s midterm victory represents both political survival and a reaffirmation of Argentina’s experiment with radical economic transformation.
