Milei‘s Party Secures Notable Gains in Argentine Midterm Elections
BUENOS AIRES – Javier Milei’s La Libertad Avanza party achieved a ample victory in argentina’s midterm legislative elections Sunday, positioning the president to more effectively pursue his agenda despite lacking an outright majority in Congress. While a precise seat count remained unavailable Sunday evening, Milei stated that securing a third of the seats would be a “good number,” enabling him to leverage presidential vetoes against parliamentary opposition.
The election results represent a critical test for Milei’s ambitious economic reforms and a potential turning point for Argentina‘s political landscape. The gains come as Milei’s administration navigates a challenging economic climate marked by high inflation – recently tamed from over 200% to 31.8% year-on-year – and a contraction of 1.8% in economic activity for 2024, despite a balanced budget unseen in 14 years. The outcome will influence the pace and scope of his planned reforms, including changes to the tax system, labor market, and social protection programs slated for implementation by 2027.
Recent weeks saw intense pressure on the Argentine peso, reflecting financial market distrust and concerns about the continuation of austerity measures should Milei’s party falter. The US Treasury intervened several times in October to purchase the peso and stabilize its value, fueling fears of a post-election devaluation.
Analysts suggest Milei “will have to take a pragmatic turn,” according to political scientist Lara Goyburu, and “regain the capacity for negotiation which allowed him to pass texts” early in his presidency. As 2023, Milei has relied heavily on decrees and ad-hoc legislative agreements, but has faced increasing resistance from a rigid parliament, described by the president with terms like “rat nest” and “degenerates.” Moderate opposition groups, the Argentine productive economy, and international lenders like the IMF have urged the executive branch to “strengthen political and social support” for his reforms.
The election results come despite a loss of over 200,000 jobs linked to Milei’s “largest fiscal adjustment in history,” and a recovery projected for 2025 that is already showing signs of slowing. The outcome underscores a growing divide within Argentine society, even as Milei’s party gains momentum.
