Javier Milei Achieves Historic Midterm Victory, Expands Congressional Control
Argentine President Javier Milei secured a significant victory in the midterm elections held on November 26, 2023. His party, La Libertad Avanza, garnered approximately 41.5% of the vote in Buenos Aires province, outpacing the traditional Peronist opposition, which received 40.8%. This outcome not only strengthens Milei’s grip on Congress but also provides fresh momentum for his administration’s ambitious economic reforms.
The election marked a historical shift in a region long dominated by the Peronist coalition. Nationwide, La Libertad Avanza increased its representation in the lower house from 37 to 64 seats. This significant gain positions Milei to effectively defend his vetoes and executive decrees, which have been central to his economic agenda.
Marcelo Garcia, Americas director at the risk-analysis firm Horizon Engage, remarked that the results exceeded even the most optimistic expectations of Milei’s supporters. He stated, “With this result, Milei will be able to easily defend his decrees and vetoes in Congress.” Political consultant Gustavo Cordoba echoed this sentiment, noting that voters appear more willing to give Milei’s economic policies a chance, declaring, “The triumph is unobjectionable, unquestionable.”
Milei’s administration has reported notable economic improvements since his inauguration. Inflation has decreased from 12.8% to 2.1% in recent months. Furthermore, the government has achieved a fiscal surplus and implemented extensive deregulation measures, marking a sharp departure from years of economic challenges.
The U.S. government, under former President Donald Trump, linked financial support to Milei’s electoral performance, proposing a $40 billion aid package. This included a $20 billion currency swap and a similar amount allocated for a debt-investment facility, aiming to bolster Argentina’s economy.
Investor confidence has surged following the election results, with expectations that Argentine bonds and stocks will rally. The stronger hand Milei holds in Congress is anticipated to accelerate his reform agenda, which he described as “a turning point for Argentina.”
Italian Prime Minister Giorgia Meloni and Milei were seen together at the inauguration of former President Trump, symbolizing international interest in Argentina’s political developments. The implications of these midterm results extend beyond national borders, highlighting the strategic significance of Argentina in the wider Latin American context. As Milei prepares to implement his sweeping reforms, the coming months will be crucial in determining the trajectory of Argentina’s economic recovery.
