Milei scores sweeping victory in Argentina’s midterms

Argentina’s President Javier Milei scored a major political victory in Sunday’s legislative elections, with early results showing his libertarian movement winning decisively across key regions, including the historically Peronist Buenos Aires province.

According to official figures, Milei’s La Libertad Avanza coalition captured 41.5 percent of the vote in Buenos Aires, narrowly ahead of the Peronist bloc’s 40.8 percent. Nationwide, the party will hold 64 seats in the Chamber of Deputies, up from 37, signaling a sharp rise in popular support for Milei’s economic agenda of deep austerity and free-market reforms.

The outcome marks a striking turnaround in Argentina’s political landscape. Half of the 127 lower house seats and a third of the Senate, 24 in total, were contested. The Peronists, while still the largest minority, face a growing challenge from Milei’s movement, which entered Congress just two years ago.

Milei’s administration has earned cautious praise from the White House and international investors after slashing monthly inflation from 12.8 percent before his inauguration to 2.1 percent last month, achieving a rare fiscal surplus, and advancing deregulation measures. US President Donald Trump’s government, which extended a substantial bailout package to Buenos Aires, has tied continued financial support to Milei’s political stability.

Despite those economic gains, Milei has faced waning approval in recent months amid discontent over spending cuts and a corruption probe involving his sister and chief of staff. Analysts, however, said that surpassing 35 percent of the vote would be considered a strong mandate. “More than 35 percent of the vote would be a positive outcome for Milei’s government,” one political observer noted, suggesting it could enable him to block opposition efforts to reverse his fiscal reforms.

The president has hinted at a post-election cabinet reshuffle that may bring in figures from the centrist PRO party led by former President Mauricio Macri, a frequent congressional ally.

The victory is also expected to calm financial markets. Investors anticipate a rally in Argentine bonds and equities when markets open Monday, as the results give Milei additional leverage to push through reforms.

Analysts also predict a devaluation of the peso, arguing the currency has been artificially supported to contain inflation.

Trump’s proposed USD 40 billion rescue package, including a USD 20 billion currency swap and a potential USD 20 billion debt investment facility, now appears more likely to advance, as Milei’s strengthened position assures Washington of policy continuity and reform momentum.