Victory for Milei’s party in Argentina midterms seen as test for his austerity cuts and Trump support

Argentina’s President Javier Milei led his party to a resounding victory in Sunday’s midterm elections, a result that reinforces his radical austerity program and secures crucial financial backing from the United States under the Trump administration. The elections, held on October 26, 2025, saw Milei’s La Libertad Avanza party capture nearly 41% of the vote, winning 13 of 24 Senate seats and 64 of the 127 contested lower-house seats. This significant gain shifts the balance of power in Argentina’s Congress, where Milei previously faced stiff opposition to his agenda. Since taking office in 2023, Milei has implemented deep spending cuts, deregulated the economy, and slashed subsidies, branding his approach with a metaphorical ‘chainsaw’ to state expenditure. His policies have included layoffs of tens of thousands of public workers and reductions in education, health, and pension budgets, aimed at curbing inflation and reducing the fiscal deficit. The election outcome was closely watched by the international community, particularly the United States. Former President Donald Trump had explicitly tied a proposed $40 billion financial lifeline for Argentina to Milei’s political success, stating that U.S. support would continue only if Milei maintained momentum. This conditional backing highlighted the geopolitical stakes of the vote. Supporters of Milei celebrated the victory, viewing it as a mandate for continued reform. Many Argentines, weary of decades of economic mismanagement under previous governments, see Milei’s measures as necessary painful steps toward long-term stability. Cheering crowds gathered in Buenos Aires, expressing hope for a transformed nation. However, critics point to the social costs of austerity, including rising unemployment, declining public services, and reduced purchasing power for ordinary citizens. Some voters backed Milei reluctantly, acknowledging the need for fiscal discipline but concerned about the harsh impact on vulnerable populations. Economically, Milei’s policies have succeeded in taming hyperinflation, which had soared above 100% annually before his tenure, and restoring investor confidence. However, challenges remain, such as an overvalued peso, drained reserves, and upcoming debt repayments, raising fears of a potential crisis. Looking ahead, the strengthened congressional support empowers Milei to advance more radical reforms without legislative hurdles. The focus now shifts to whether economic improvements will trickle down to alleviate public suffering before the next presidential election in 2027, where Milei is expected to seek re-election.