Argentine President Javier Milei secured a historic victory in the midterm elections held on March 15, 2024, significantly expanding his party’s influence within Congress. This win is seen as a pivotal moment for Milei’s government and his ongoing push for extensive economic reforms and spending cuts in one of Latin America’s largest economies.
The libertarian party, La Libertad Avanza, garnered approximately 41.5% of the votes in the Buenos Aires province, marking a notable upset against the longstanding dominance of the Peronist opposition, which received 40.8% of the votes, according to figures released by Reuters and The Associated Press. This outcome has given Milei greater leverage to advance his agenda, which includes substantial deregulation and fiscal measures aimed at stabilizing the economy.
Strengthening Congressional Control
With this electoral success, La Libertad Avanza has increased its representation in the lower house from 37 to 64 seats. Such gains position Milei to more effectively defend his vetoes and executive decrees that have been central to his economic strategy. Marcelo Garcia, Americas director at the risk-analysis firm Horizon Engage, remarked on the unexpected strength of the results, stating, “The result is better than even the most optimistic Milei supporters were hoping for.”
Political analyst Gustavo Cordoba highlighted that the election results reflect a cautious optimism among voters, suggesting they are willing to grant Milei’s policies additional time to take effect. He noted, “Many people were willing to give the government another chance. The triumph is unobjectionable, unquestionable.”
Economic Context and Future Outlook
Since taking office, Milei’s administration has seen a significant drop in inflation, from 12.8% in his first month to 2.1% last month. Additionally, the government has reported a fiscal surplus and implemented broad deregulation measures, marking a significant turnaround after years of economic instability.
In a strategic move prior to the elections, the U.S. government under former President Donald Trump proposed a $40 billion aid package for Argentina. This included a $20 billion currency swap and a similar amount in a debt-investment facility, contingent on Milei’s performance in the midterm elections. This support indicates a willingness from the U.S. to back reforms that align with its economic interests in the region.
Following the election results, investors reacted positively, with expectations of a rally in Argentine bonds and stocks, bolstered by Milei’s strengthened position in Congress. Milei himself labeled the election as “a turning point for Argentina,” reinforcing the notion that his government is poised to pursue aggressive economic reforms moving forward.
As Milei’s administration embarks on this new chapter, the implications of his victory will likely reverberate throughout Argentina’s political and economic landscape, shaping the future of governance in the country.
