Argentina Election shock: Milei secures landslide win amid economic turmoil
Argentina’s President Javier Milei secured a decisive victory in the 26 October 2025 midterm elections, winning nearly 41% of the vote and dramatically expanding his party, La Libertad Avanza, in Congress. The result gives Milei 13 of 24 Senate seats and 64 of 127 lower-house seats, enabling him to accelerate his radical spending cuts and free-market reforms.
The win marks Milei’s first major national test since assuming office in 2023, following two years of austerity policies that have divided public opinion. Supporters hail him for taming inflation, reducing the deficit, and attracting foreign investment, while critics warn of rising unemployment, shrinking public services, and an impending recession.
Chainsaw Austerity and Economic Reform
Milei’s administration has pursued what he calls a “chainsaw” approach to government spending, slashing budgets for education, healthcare, pensions, infrastructure, and subsidies. Tens of thousands of public sector employees have been laid off, and his vetoes of legislation supporting universities and people with disabilities were previously overturned by opposition lawmakers.
Despite these controversies, Milei’s increased legislative support now allows him to push forward his Thatcherite-style economic programme, which includes deregulation, privatization, and market liberalization. He has also propped up the peso to control inflation, though experts warn that this has left Argentina with depleted reserves ahead of $20bn debt repayments in 2026.
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US Support and Global Attention
The United States has pledged a $40bn lifeline for Argentina, conditional on Milei maintaining political momentum. This includes currency swaps, peso purchases, and facilitation of private investment. Former US President Donald Trump publicly linked Milei’s success to continued US backing, a move that drew both support and accusations of foreign interference.
International observers, including leaders like Giorgia Meloni and Nigel Farage, are watching Milei’s populist economic experiment closely, as Argentina’s approach could influence right-wing populist strategies globally.
Mixed Public Reactions
Crowds of Milei supporters celebrated in Buenos Aires, seeing the victory as a chance to “make Argentina great again.” However, critics highlight the human cost of austerity: factory closures, rising unemployment, and pension cuts. Workers, retirees, and those dependent on social programs remain concerned about Milei’s strengthened congressional position.
Despite skepticism, many Argentines still reject the Peronist model, favoring Milei’s vision of a smaller state and fiscal discipline, even if it comes with short-term economic pain.
Challenges Ahead for Milei’s Government
While financial markets may rally following Milei’s win, economists warn that currency overvaluation, depleted reserves, and slowed consumption could trigger a deeper economic crisis. The success of Milei’s reforms hinges on maintaining US support, managing inflation, and balancing austerity with social needs.
Milei’s strengthened mandate positions him for further reforms ahead of the 2027 presidential election, but the sustainability of his radical economic agenda remains uncertain. Ordinary Argentines are now watching closely to see if political gains translate into tangible improvements in living standards.
FAQ
Q: Who is Javier Milei and why is he significant in Argentina?
A: Javier Milei is Argentina’s president, elected in 2023. He is known for radical free-market policies and austerity measures, aimed at controlling inflation and reducing government spending.
Q: What were the results of the 2025 Argentina midterm elections?
A: Milei’s party, La Libertad Avanza, won nearly 41% of the vote, securing 13 Senate seats and 64 lower-house seats, significantly increasing legislative support.
Q: How has Milei’s austerity policy impacted Argentina?
A: His “chainsaw” approach cut public spending on education, pensions, and healthcare, resulting in layoffs, factory closures, and economic contraction, though supporters credit him with reducing inflation.
Q: What role did the US play in Argentina’s elections?
A: The US offered a $40bn aid package, contingent on Milei maintaining political momentum, including currency swaps, peso purchases, and private investment facilitation.
Q: What challenges lie ahead for Milei?
A: Milei faces managing inflation, economic growth, depleted reserves, and public discontent. The success of his reforms depends on balancing austerity with social needs while sustaining international support.
Q: How did Argentines react to Milei’s midterm victory?
A: Supporters celebrated his win as a chance for reform, while critics worried about the social impact of austerity, including pensions, healthcare, and employment.