Milei’s party wins big in Argentina polls

Argentine President Javier Milei’s party won a decisive victory in midterm legislative elections, handing him a reinforced mandate to pursue sweeping free‑market reforms and deep austerity measures. Milei’s La Libertad Avanza (LLA) made substantial gains in the lower house and senate, increasing its seat total and improving its position against the Peronist opposition, in results that surprised many analysts and exceeded even optimistic expectations from his supporters.

Officials and Milei himself framed the outcome as public endorsement of his overhaul: steep spending cuts, broad deregulation, labour‑market liberalisation and measures aimed at opening the economy to foreign investment. The government pointed to dramatic improvements in macroeconomic indicators under his tenure — notably a sharp slowdown in inflation, which fell from double digits before his inauguration to low single digits recently, and the return to a fiscal surplus — as validation of the policy course. U.S. political leaders and international investors signalled approval, highlighting renewed confidence that helped lift market sentiment.

The vote margin reflected both support for continued reform and concern among some voters about the risks of reversing Milei’s program. Analysts suggested part of the electorate may have backed LLA out of fear that abandoning the new economic direction could trigger renewed instability. Still, Milei has faced domestic headwinds: public frustration over spending cuts, job losses and a corruption scandal involving his sister and chief of staff had dented popularity in recent months, underscoring persistent social tensions.

While the results strengthened Milei’s leverage in Congress and improved his ability to defend vetoes and advance legislation, LLA stopped short of an outright majority, leaving coalition‑building and negotiation with allied blocs necessary for the most contentious reforms. Observers warned that implementation and political management will determine whether the heightened legislative power translates into durable policy wins without provoking renewed unrest.

Markets were poised for a positive reaction, with expectations that accelerated reforms could prompt further currency adjustments and investor interest. The immediate political landscape now centers on Milei’s ability to convert electoral momentum into concrete, sustainable policy outcomes while balancing economic stabilisation with social pressures.