Argentine President Javier Milei secured a significant victory in the midterm elections held on October 22, 2023, solidifying his control over Congress. This outcome enables his administration to advance its agenda of deep spending cuts and extensive free-market reforms. Milei’s libertarian party, La Libertad Avanza, garnered approximately 41.5% of the votes in Buenos Aires province, a remarkable shift in a region historically dominated by the Peronist opposition, which received 40.8%, according to reports from Reuters and The Associated Press.
Nationwide, Milei’s party increased its representation in the lower house from 37 to 64 seats. This expansion provides the president with a stronger mandate to uphold his vetoes and executive decrees, which have been central to his economic strategy. Marcelo Garcia, the Americas director at Horizon Engage, remarked that the election results exceeded even the most optimistic expectations for Milei’s supporters.
“This result will allow Milei to effectively defend his decrees and vetoes,” Garcia stated, reflecting the sentiments of many political analysts. Gustavo Cordoba, a political consultant, added that the election result signals a willingness among voters to give Milei’s economic policies another chance. “The triumph is unobjectionable, unquestionable,” Cordoba noted.
Milei’s administration has seen a significant reduction in inflation, which fell from 12.8% before his inauguration to 2.1% last month. The government has also reported a fiscal surplus alongside a series of deregulation initiatives, marking a dramatic turnaround after years of economic instability.
The U.S. government, under former President Donald Trump, had previously linked future support to Milei’s performance in the midterms, offering Argentina a substantial $40 billion aid package. This included a $20 billion currency swap and a proposed $20 billion debt-investment facility.
Following the election, investor sentiment turned positive. Financial markets are expected to respond favorably, with expectations of a rally in Argentine bonds and stocks. The strengthened position of Milei in Congress is anticipated to accelerate his reforms, which he described as “a turning point for Argentina,” according to AFP via The Times of Israel.
Milei’s victory not only reflects a shift in political power within Argentina but also reinforces his government’s mandate to implement critical economic changes. As the country navigates its path forward, the implications of this election will likely resonate across the region and influence Argentina’s economic landscape for years to come.