Argentines vote in high-stakes test of Milei's libertarian vision

Argentines headed to the polls on Sunday for midterm legislative elections, a key test of President Javier Milei’s sweeping free-market reforms and austerity drive, and a measure of whether he retains enough political momentum to push forward with his economic overhaul.

Milei’s party, La Libertad Avanza, is seeking to expand its small minority in Congress to strengthen investor confidence in his reform agenda and maintain the backing of U.S. President Donald Trump, whose administration recently extended a major $40 billion financial aid package to Argentina. Trump has hinted that continued support may hinge on Milei’s electoral performance.

“Don’t give up — we’re halfway there,” Milei urged supporters at a closing campaign rally in Rosario on Thursday. “We’re on the right path.”

Voters will decide 127 lower-house seats and 24 Senate seats, with the Peronist opposition currently holding the largest minority in both chambers. Milei’s nascent party controls only 37 deputies and six senators.

Divided electorate

Casting his ballot in Buenos Aires, Milei declined to make public comments. At polling stations, many voters expressed either confidence or fatigue over his reforms.

“Milei is risking everything for deep change, and he needs support,” said Cecilia Juarez, a 22-year-old student.
“The growth is too slow — I don’t know when we’ll be a first-world country,” countered Silvio Caballero, a 54-year-old professor.

Milei’s government has impressed international observers by cutting inflation from 12.8 percent before his inauguration to 2.1 percent last month, achieving a fiscal surplus and deregulating key sectors. Yet his popularity has waned amid anger over spending cuts and a corruption scandal involving his sister and chief of staff.

Opposition governor Axel Kicillof accused Milei’s administration of “cruelty” in its economic adjustment. Analysts say Milei needs at least 35 percent of the vote to maintain momentum and secure alliances to block opposition efforts in Congress.

High stakes for markets

A poor showing could trigger a peso devaluation, as analysts warn the currency has been kept artificially high to control inflation.

Political scientist Maria Laura Tagina noted that the Peronists face a tougher battle, with more seats at stake.

Milei has signalled plans for a cabinet reshuffle after the vote, possibly incorporating figures from the centrist PRO party led by former president Mauricio Macri. On Monday, Foreign Minister Gerardo Werthein resigned.

The White House is closely monitoring the election outcome. Trump’s bailout includes a $20 billion currency swap and a potential $20 billion debt-investment facility, underscoring Washington’s stake in Milei’s success.

Copied