Milei Faces Critical Test as Argentina‘s Midterm Elections Loom
BUENOS AIRES – Argentina’s upcoming midterm elections represent a pivotal moment for President Javier Milei and his ambitious libertarian experiment, as voter frustration mounts over economic hardship and a series of political scandals threaten to undermine his anti-establishment image. The elections will gauge the public’s continued support for Milei’s radical reforms and his signature promise to dollarize the economy.
Milei, who assumed office in December 2023, inherited an economy plagued by decades of monetary instability, a cycle economist Nicolás Cachanosky attributes to Argentina’s volatile political swings between populist and non-populist governments. Cachanosky argues that even minor shifts in perceived political risk can trigger currency crises, and that dollarization is the only viable solution.
However, Milei’s administration has been beset by controversies that risk eroding public trust. In Febuary,a cryptocurrency promoted by Milei,$Libra,collapsed after its founders allegedly cashed out at the peak. Further damaging his image, leaked recordings in August implicated diego Spagnuolo, former head of the National Disability Agency, in kickbacks perhaps linked to Milei’s sister and closest advisor, Karina Milei, whom the President refers to as el jefe (the male boss). additionally, José Luis Espert, a Milei ally, resigned after revelations of financial ties to an accused drug trafficker.
These scandals have resonated with voters, with a leading pollster identifying corruption as a top concern – a first during Milei’s presidency. The incidents are fueling a perception that Milei’s “revolution” is devolving into customary politics.
To maintain momentum, Milei must demonstrate an ability to build coalitions, remain true to his libertarian principles, dispel accusations of corruption, and convince skeptical centrists that his austerity measures will ultimately alleviate their economic pain. The outcome of the midterm elections will likely determine whether Milei can salvage his agenda or see his movement falter.
