BUENOS AIRES, Argentina (AP) 鈥� Argentina鈥檚 libertarian won decisive victories in key districts in Sunday, clinching a crucial vote of confidence that strengthens his ability to carry out his radical free-market experiment with billions of dollars in backing from the Trump administration.
In the election on Milei’s past two years in office, his upstart La Libertad Avanza party scored over 40% 鈥嬧�媜f votes compared with 31% for the left-leaning populist opposition movement, known as Peronism, exceeding analysts’ projections.
Milei, a key , said his party and allied blocs picked up 14 seats in the Senate and 64 in the lower house of Congress on Sunday, bolstering the government’s support in the legislature enough to uphold presidential vetoes and block impeachment efforts.
At La Libertad Avanza headquarters late Sunday in downtown Buenos Aires, a beaming Milei hailed the election sweep as a mandate to press forward with his spending cuts and introduce ambitious tax and labor reforms. The results also automatically position him as a candidate for reelection in 2027.
鈥淭he Argentine people have decided to leave behind 100 years of decadence,鈥� Milei exulted as his supporters cheered, referring to a succession of Peronist governments that brought Argentina infamy for its inflationary spirals and .
鈥淭oday we have passed the turning point. Today we begin the construction of a great Argentina.鈥�
High stakes include $40 billion from the U.S.
Perhaps never has an Argentine legislative election generated so much interest in Washington and Wall Street.
a with Argentina’s central bank and on a good showing for Milei in national midterms, threatening to rescind the assistance for the cash-strapped country in the event of a Peronist victory.
鈥淚f he wins we鈥檙e staying with him, and if he doesn鈥檛 win, we鈥檙e gone,鈥� Trump said after welcoming Milei to the White House earlier this month.
Those contentious comments added to mounting pressure on Milei, who has since the last month. Argentina鈥檚 bonds and currency nosedived as markets sensed that the public was losing patience with Milei鈥檚 reforms and that the midterm race would be tight.
To stem the run on the peso, Milei burned through billions of dollars in foreign exchange reserves to shore up the peso. In an extraordinary move, the U.S. Treasury then came to the rescue, for greenbacks and finalizing the credit line.
In the end, the Peronist alliance performed poorly, underscoring how weak the once-dominant movement has become in the Milei era, largely as a result of internal divisions. Markets were widely expected to rally on Monday.
鈥淔or foreign investors, this outcome is a relief because it shows that the Milei program can be sustainable,鈥� said Marcelo J. Garc铆a, the America鈥檚 director for the geopolitical risk consultancy Horizon Engage.
鈥淚t leaves the opposition weakened and fragmented, just as it was when Milei won the presidency in December 2023,鈥� Garcia added.
The Peronist coalition has with Milei’s into a new political strategy after that the chain saw-wielding outsider
Trump, while on his way to Japan on Monday, posted on Truth Social that Milei was 鈥渄oing a wonderful job鈥� after his party beat expectations in midterm elections.
鈥淥ur confidence in him was justified by the People of Argentina,鈥� Trump wrote.
Milei responded to Trump鈥檚 post, calling him 鈥渁 great friend鈥� of Argentina and thanking him for 鈥渢rusting the Argentine people.鈥�
A changed electoral map
The results showed Milei鈥檚 young libertarian party gaining support across the country 鈥� including in some surprising corners that have long been under the sway of Peronism.
In the closely watched Buenos Aires province, a Peronist stronghold home to nearly 40% of the electorate, La Libertad Avanza eked out a razor-thin victory Sunday. Just last month, the Peronists beat Milei鈥檚 party there by a whopping 14 percentage points.
Axel Kicillof, governor of Buenos Aires province and the most influential elected official in the Peronist opposition, criticized Trump for putting his thumb on the scale.
He warned that the billions of dollars in financial aid from the U.S. Treasury and investment banks would do nothing to help ordinary Argentines or by a contracting economy.
鈥淚 want to make it clear that neither the U.S. government nor JP Morgan are charitable societies,鈥� he said. “If they come to Argentina, it is for nothing other than to take a profit.鈥�
With Milei’s efforts to deregulate the economy and scrap tariffs winning over Argentina鈥檚 powerful agriculture sector, La Libertad Avanza also swept Santa Fe, which dominates soybean production and processing, and C贸rdoba, another powerhouse farming province.
Risks remain for Milei as austerity hits hard
Despite Milei鈥檚 new momentum, experts caution that the irascible president still needs to court political allies to see through his agenda. Given the limited number of seats up for grabs in this election, it was mathematically impossible for Milei to secure a majority in either house.
鈥淭his victory is necessary, but not sufficient to maintain control of Congress,鈥� said political consultant Sergio Berensztein. 鈥淭he government must build a broad and effective coalition with like-minded forces.鈥�
Seeking to capitalize quickly on Sunday鈥檚 results, Milei said he called the country鈥檚 powerful provincial governors to accelerate agreements on long-term economic reform.
Sunday’s outcome will also test public patience for Milei’s cost-cutting measures in the coming months. Although 鈥� from an annual high of 289% in April 2024 to 32% last month 鈥� the price increases still outpace salaries and pensions.
The electorate appears increasingly polarized between beneficiaries of Milei’s reforms and those who say they’re struggling to make ends meet like never before.
In the financial district of Puerto Madero, luxury car dealerships report sales surging since Milei scrapped import restrictions. Streets bustle with bankers who . Fine restaurants serve Argentine oil executives who gush about his .
But at a soup kitchen on the other side of Argentina鈥檚 Riachuelo River, Epifan铆a Contreras, 64, said she feels like she’s bearing the brunt of the cutbacks.
鈥淵ou can鈥檛 live on 290,000 pesos a month with today鈥檚 inflation,鈥� she said, describing how has shriveled in value since Milei cut cost-of-living increases. 鈥淭he situation is getting worse and worse.”
Reflecting widespread public resignation, electoral authorities reported a turnout rate of just under 68% Sunday, among the lowest recorded since the nation鈥檚 1983 return to democracy. Voting is compulsory in Argentina.
鈥淚 vote out of obligation, nothing more,鈥� said Mat铆as Paredes, 50, a real estate broker whose foreign clientele vanished with Milei鈥檚 strong exchange rate. 鈥淣one of these figures inspire optimism. We’re just choosing the lesser evil.”
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Associated Press writers Almudena Calatrava and D茅bora Rey contributed to this report.
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