Milei's victory in midterm elections: recovery or relegation for Argentina?

Milei's victory in midterm elections: recovery or relegation for Argentina?

Argentina's midterm elections, which took place on Sunday, brought a remarkable victory for Argentine President Javier Milei's party, La Libertad Avanza. Loud vienna.at Milei's party received 40.8 percent of the vote and secured 64 seats in Congress, while the Peronist opposition received 24.5 percent and won 31 seats. This success is seen as support for Milei's rigid austerity measures, which have met with a lot of criticism in recent months.

In the province of Buenos Aires, Milei's party even achieved 41.5 percent of the vote, surpassing the Peronist coalition's 40.8 percent. The victory is seen as decisive by political experts as a result above 35 percent was necessary to prevent possible opposition vetoes. The election is also seen as a test of the support of the US government, which under President Donald Trump is supporting Argentina with a financial package.

Political challenges and public discontent

Despite this success, Milei faces significant political challenges. Reports from DW show that a decline in his popularity to 40 percent has been registered, particularly among young voters who are increasingly disillusioned. There are also signs of discontent within his ranks: Marcela Pagano, a member of Milei's party, announced their resignation along with three other MPs. She criticized the government for its failures, particularly in relation to the needs of the middle class and disadvantaged groups.

The problems Argentina is currently facing are complex. Over 25,000 small and medium-sized businesses have had to close or cease operations due to falling demand and rising costs. Real earnings have fallen by around 20 percent, leading to alarming financial hardship for many citizens. The radical austerity measures introduced by Milei have led to a budget surplus, but at the expense of the poorer sections of the population.

Financial stability and international reactions

Loud vienna.at Foreign investors and the U.S. government responded positively to Milei's success in reducing monthly inflation, which fell to 2.1 percent in September 2025. Still, there are concerns about a possible devaluation of the peso, which analysts view as overvalued. This uncertainty also strengthens the position of the opposition and could further destabilize the political landscape in the run-up to the presidential elections in October 2023.

The challenges facing Argentina are compounded by alarming inflation of over 100 percent and a poverty rate of at least 39 percent. According to that IPG Journal The general desperation among the population is leading to a rise in extreme political movements and endangering the country's democratic structures.

The coming elections represent not only a political test for Milei, but also a crucial situation for the future of Argentine democracy and society.