Voters in Argentina are casting their ballots in midterm legislative elections, which will serve as a crucial test of support for President Javier Milei’s radical free-market reforms. These policies have triggered economic hardship for many citizens, marking a pivotal moment in his presidency.
The elections on Sunday will determine the composition of half of Argentina’s lower Chamber of Deputies, comprising 127 seats, and a third of the Senate, consisting of 24 seats. The results could shape the future of Milei’s libertarian agenda, which includes significant budget cuts and efforts to deregulate the struggling economy.
Milei’s political party, La Libertad Avanza, is a relatively new force in Argentine politics, currently holding only 37 deputies and six senators—less than 15 percent of congressional seats. The party aims to increase its representation to at least one-third of the seats, which would strengthen its ability to protect Milei’s policies from opposition challenges, bolster investor confidence, and maintain support from right-wing allies such as U.S. President Donald Trump.
“Don’t give up because we’re halfway there,” Milei said during a campaign event in Rosario. “We’re on a good path.”
Earlier this month, the U.S. government announced a potential $40 billion bailout package for Argentina, including a $20 billion currency swap to stabilize the peso and a possible $20 billion financial facility. However, Trump has warned that he may withdraw support if Milei performs poorly in the elections, stating, “If he doesn’t win, we’re not going to waste our time, because you have somebody whose philosophy has no chance of making Argentina great again.”
This stance has drawn criticism from U.S. farmers, who are struggling due to trade tensions with China. Many question Trump’s commitment to an “America First” policy, given the potential impact on American agricultural exports.
U.S. Senator Chuck Grassley of Iowa expressed concerns over the decision, saying, “Why would the USA help bail out Argentina while they take American soybean producers’ biggest market?”
During a press conference on October 19, a reporter asked Trump why he chose to support Argentina despite these concerns. He responded, “Argentina is fighting for its life. Young lady, you don’t know anything about it. … They have no money. They have no anything.”
Currently, both chambers of Argentina’s legislature are controlled by the left-wing and centrist opposition to Milei’s party. The Peronist movement holds the largest minority in both houses.
Milei, a self-proclaimed “anarcho-capitalist,” took office in December 2023, vowing to revitalize Argentina’s struggling economy. He famously wielded a chainsaw as a symbol of his intent to drastically reduce government spending. His administration has led to the elimination of tens of thousands of public sector jobs, cuts in funding for education, health, and pensions, and the suspension of public works projects.
While these austerity measures have contributed to rising poverty, they have also significantly reduced monthly inflation—from 12.8 percent before his inauguration to 2.1 percent last month. However, economic growth and consumer activity have declined.
Many of Milei’s key policies, such as plans to privatize state-owned enterprises, have faced obstacles in Congress. Additionally, members of his inner circle have been involved in various scandals, including one linked to his sister, who serves as his chief of staff.
With declining approval ratings and recent setbacks in provincial elections, analysts predict that Milei’s party will face challenges in securing its goal of gaining one-third of the seats in the upcoming vote.
Mauricio Monge, a Latin America economist at Oxford Economics, told AFP that the U.S. bailout is unlikely to offset the growing risk of stalled reforms if Milei’s party fails to gain sufficient support. “If history has taught us anything about Argentina, it’s that previous bailouts, when political support wanes, have proven futile,” he said.
English 
Arabic 