Argentina's President Javier Milei's party, La Libertad Avanza, secured additional seats in Sunday's midterm elections. The party received approximately 41% of the vote, gaining 13 of 24 contested Senate seats and 64 of 127 contested lower-house seats. This outcome is expected to facilitate the president's agenda of spending reductions and economic deregulation.
Election Results and Legislative Impact
La Libertad Avanza's gains represent an increase from its previous representation of seven Senate seats and 37 seats in the lower house. Prior to these elections, several of President Milei's vetoes, including those on bills to increase funding for state universities, people with disabilities, and children's healthcare, had been overturned by opposition lawmakers. The enhanced congressional presence is anticipated to reduce political obstacles for the administration's policy initiatives.
Economic Policies and Public Response
President Milei, who took office in 2023, campaigned on a platform of significantly reducing state spending, often using the metaphor of a "chainsaw." His administration has implemented budget cuts across education, pensions, health, infrastructure, and subsidies, in addition to laying off public sector workers.
Supporters, including former US President Donald Trump, credit these measures with addressing inflation, which had reached triple-digit annual figures before Milei's presidency, reducing the deficit, and improving investor confidence. Critics, however, point to job losses, a decline in manufacturing, reduced public services, a decrease in purchasing power, and a projected recession as consequences of these policies. Concerns have also been raised regarding the impact of pension reductions and potential vulnerability of funding for services related to individuals with disabilities.
The administration has also worked to stabilize inflation by supporting the peso, which has led to its overvaluation and a reduction in national reserves ahead of $20 billion in debt repayments scheduled for the next year. This situation had previously raised concerns about potential economic instability.
International Support and Pre-Election Context
The United States has offered Argentina a potential financial package of $40 billion, comprising a currency swap, peso purchases, and facilitated private investment. Before the elections, Donald Trump had stated that US support would depend on Milei maintaining political momentum.
Leading up to the elections, uncertainty had emerged regarding President Milei's political future due to public weariness with austerity measures and a series of corruption allegations involving his party. The election recorded a 67.9% voter turnout, which is the lowest for a national election in decades.