BUENOS AIRES:
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.
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%
before Milei’s inauguration to 2.1% 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.
