argentina’s Milei Gains Momentum as Voters embrace Economic Reform
NEW YORK – Recent legislative election results signal strong public support for Argentine President Javier Milei’s controversial economic reforms, defying predictions of a looming crisis and paving the way for him to pursue his agenda, according to economist Nouriel Roubini. Despite widespread criticism of Milei’s “draconian” approach, Argentinians appear to prioritize short-term economic hardship over a return to the Peronist policies of the past.
Heading into the October elections, analysts expressed growing concern over Argentina‘s economic future, especially with substantial foreign debt maturing next year. The prevailing view held that Milei’s exchange-rate-based stabilization program - deliberately managing currency depreciation to combat inflation – had created an unsustainable overvaluation and a growing external deficit, setting the stage for a potential economic collapse.
However, Roubini, author of Bailouts or Bail-Ins: Responding to financial Crises in Emerging Economies, and a long-time observer of Argentine economic policy, disagreed with this assessment. The election outcome suggests a willingness among Argentinians to endure immediate economic pain in pursuit of long-term stability and a break from previous economic models. This outcome now provides Milei with a clearer mandate to continue implementing his reforms.
