Milei wins high-stakes Argentina midterm elections

Argentine President Javier Milei's party cruised to victory in midterm legislative elections as voters handed him a mandate to keep pushing through his radical overhaul of the economy despite widespread discontent with his deep austerity measures.

A relief to Milei, whose poll numbers had sagged in recent weeks, the results are also likely to please US President Donald Trump, whose administration had faced criticism after providing Argentina with a hefty financial bailout.

"Congratulations to President Javier Milei on his Landslide Victory in Argentina. He is doing a wonderful job! Our confidence in him was justified by the People of Argentina," Trump said in a post on Truth Social.

Analysts said the stronger-than-expected showing could reflect fear of renewed economic turmoil if the country abandoned Milei's austerity policies which, while slashing subsidies long relied on by many Argentines, have succeeded in drastically slowing inflation.

“Argentines showed that they don’t want to return to the model of failure,” said Milei, speaking triumphantly before a crowd of supporters at a hotel in Buenos Aires after the results.

ARGENTINE PUBLIC WARY OF PAST ECONOMIC CRISES

Gustavo Cordoba, the director of the Argentine Zuban Cordoba polling firm, said he was surprised by Milei's showing and thought it reflected concern about potentially repeating the economic crises of past governments.

"Many people were willing to give the government another chance," he said. "We'll see how much time Argentine society gives the Argentine government. But the triumph is unobjectionable, unquestionable."

Cordoba said Milei's government appeared to have secured the one-third of seats it needs in the Chamber of Deputies to prevent any future presidential vetoes from being overturned by Congress. In the last few months, the opposition had overturned several Milei vetoes of spending bills he had said threatened the country's fiscal balance.

"The result is better than even the most optimistic Milei supporters were hoping for," said Marcelo Garcia, Americas director of risk consultancy Horizon Engage. "With this result, Milei will be able to easily defend his decrees and vetoes in Congress," he said, adding that allies will have more of an incentive to support a winning president.

Indeed, in his celebratory speech, Milei suggested a deeper willingness to form partnerships, saying "there are dozens of deputies and senators from other parties with whom we can reach basic agreements".

Foreign investors have been impressed by the government's ability to significantly reduce monthly inflation from 12.8 per cent before Milei's inauguration to 2.1 per cent last month, while achieving a fiscal surplus and enacting sweeping deregulation measures.

To support Milei, the Trump administration offered a bailout potentially worth $40 billion, including a $20 billion currency swap that is already signed and a proposed $20 billion debt investment facility.

"We look forward to continued steps toward economic freedom that will attract private sector investment and job creators, bringing prosperity to the Argentine people," US Treasury Secretary Scott Bessent said in a post on X while congratulating Milei.