Milei Secures Decisive Midterm Win, Tightens Control Over Argentina's Reform Drive

Post by : Raina Nasser

In a notable political reversal, President Javier Milei achieved a clear victory in Argentina’s legislative midterms, reinforcing his authority to press ahead with a sweeping economic reform program. Voters appeared to back his stringent fiscal approach despite widespread concern about higher living costs and subsidy removals.

The result arrives as a rebound for Milei after a recent dip in approval ratings. Supporters gathered across Buenos Aires as Milei claimed triumph, calling the outcome a vindication of his push for rapid change and thanking citizens for entrusting his agenda.

Observers interpret the outcome as a reaction to fears of renewed economic instability. Milei’s austerity steps have coincided with a sharp fall in headline inflation — recorded at 12.8% at the start of his term and reported at 2.1% last month — and many voters appear prepared to accept short-term pain for perceived long-term gains.

Analysts highlight that winning roughly one-third of seats in the Chamber of Deputies strengthens Milei’s ability to shield his policies from legislative reversals, giving him the muscle to sustain vetoes. “The scale of this result exceeded even the most optimistic expectations within his camp,” said Marcelo Garcia, Americas director at Horizon Engage.

In Buenos Aires province, historically a Peronist bastion, La Libertad Avanza secured 41.5% of the vote versus the Peronist coalition’s 40.8%. Nationwide, Milei’s party increased its representation to 64 seats in the lower house, up from 37, signaling a significant realignment in Argentina’s political map.

The outcome also drew international attention. Reports indicate the U.S. administration under President Donald Trump has signalled backing for Milei’s market-oriented policies and has proposed a $40 billion support package, reportedly including a $20 billion currency swap and a debt investment facility.

Market watchers expect a favourable reaction when trading resumes Monday, with forecasts of gains for Argentine bonds and equities as investors welcome Milei’s bolstered political capital. Economist Maria Laura Tagina said the victory should help accelerate reforms and attract outside investment.

Facing sustained criticism over austerity, Milei remained assertive and hinted at a cabinet reshuffle to incorporate centrist allies and broaden his governing coalition. After voting in Buenos Aires, he pledged to lead Argentina into a new phase grounded in “discipline, freedom, and courage.”

For many Argentines, the election transcended party politics: it represented hope that Milei’s bold economic experiment can break the cycle of chronic inflation and instability and lay the foundations for sustained growth.