BUENOS AIRES (CN) - Argentinian President Javier Milei's administration scored a vote of confidence Sunday as his party won more than 40% in the midterm elections, which were read as a test to his sweeping austerity policies and unorthodox politics. Peronists, the main opposition, fell behind with 31%.
"This result is not more and not less than the confirmation of the mandate we took in 2023," Milei said in his victory speech. "Today, the entire country confirmed its will to irreversibly change the destiny of our homeland."
Outside La Libertad Avanza's party headquarters, hundreds gathered to celebrate. Although a libertarian win was forecast for some jurisdictions, including Buenos Aires, Milei's party earned a staggering percentage in opposition districts too.
Hugo Benitez, 56, a computer technician, said he believed a "new country" is coming. His economic situation has been hard recently, but he said he had to "keep calm" and wait for reforms to deliver.
"The world is changing," Benitez said. "This is a joint work."
While Milei's party didn't achieve a congressional majority, it has enough lawmakers to support the presidential vetoes he intends to use to counter opposition proposals. Milei said his party and allied blocs picked up 14 seats in the Senate and 64 in the lower house of Congress.
"I'm surprised by the result, honestly," Milei said in an interview Sunday night. "The Argentine map is screaming that it wants to live in this world of freedom and progress, that it wants to hug growth."
The national currency, the Argentine peso, surged by 10% when the markets opened Monday. The Merval index rose by 20%. The financial sector's gains showed relief the Peronist party, a center-left pro-regulation force, did not win.
In addition to austerity measures he has already implemented, including reducing the size of the state by halting public works projects and cutting the public budget, Milei is also introducing fiscal and labor reforms. He is considering changes to pensions, especially since he's spoken of forming a majority in Congress through alliances.
His drastic cuts have driven inflation down from an annual high of 289% in April 2024 to 32% last month, though it salaries and pensions are rising more slowly.
"Milei is mistaken to oversee the situation that our people are going through," said Axel Kicillof, governor of the Province of Buenos Aires and key Milei antagonist, as he addressed supporters at his party's headquarters. "They've lost jobs, the economic activity is plummeting, and businesses are shutting down every day."
Although opposition representatives have said they will now redouble their efforts, they face an uphill battle for the two years before the next presidential election. Peronist movement leader Cristina Kirchner is serving a six-year sentence under house arrest for a fraud case.
"BIG WIN in Argentina for Javier Milei, a wonderful Trump Endorsed Candidate! He's making us all look good," wrote Donald Trump on X.
Over the past weeks, the Trump administration has backed Milei with an infusion of cash and support. In September, the presidents met at the United Nations General Assembly, where U.S. Treasury Secretary Scott Bessent announced a bailout plan to aid Argentina ahead of the midterms.
On Oct. 14, Milei and Trump held their first bilateral meeting at the White House. Trump explicitly linked U.S. financial support to Milei's success in the election. Shortly afterward, the two countries signed a $20 billion swap deal. The U.S. Treasury also intervened in the local currency market to prevent the peso from devaluing before the election, with some reports suggesting the measure could have exceeded $1 billion, though the exact amount is unknown.
Further financial support is in the works. Trump advisers, lobbyists and bank representatives have visited Buenos Aires in the past days, where they held meetings with executive officers, lawmakers and provincial governors. Investment areas range from the tech sector to mining, though there aren't clear details about the negotiations.
But for the United States, Argentina has become an ally as Trump seeks to overpower China in South America and threatens conflict with Venezuela and Colombia. Milei has vowed loyalty to Trump, whom he has called "incredible" and "the man of the year."
"He had a lot of help from us. He had a lot of help. I gave him an endorsement, a very strong endorsement," Trump said during his trip to Asia on Monday. "We are sticking with a lot of the countries in South America. We focus very much on South America."
Bessent wrote on X, "Argentina is a vital ally in Latin America. These results are a clear example that the Trump Administration policy of Peace through Economic Strength is working."
Source: Courthouse News Service
