Argentina’s libertarian leader Javier Milei achieved a sweeping triumph in the October 26 midterm elections, with his La Libertad Avanza party securing more than 40% of the ballots in crucial congressional contests, according to
an Al Jazeera report
. This result, which delivered 64 seats in the lower chamber and 12 in the Senate for the party, was also highlighted by
The Guardian
, and provides Milei with the legislative strength to push forward his sweeping free-market reforms and uphold presidential vetoes. The outcome, a stark reversal from a provincial loss in September, is being interpreted as public approval for austerity and deregulation, with U.S. President Donald Trump’s $20 billion currency swap deal credited as a key factor in stabilizing the peso before the vote, according to
an ETV Bharat report
.
The election outcome signals a major transformation in Argentina’s political scene. La Libertad Avanza not only exceeded most analysts’ expectations but also nearly matched the Peronist bloc in Buenos Aires province—a region long considered a leftist bastion, according to
the Los Angeles Times
. Milei’s party now controls a third of the lower house, enough to block significant legislative challenges to his reforms, Al Jazeera further reported. The victory comes amid a severe economic downturn, with inflation dropping to 32% from a high of 289% in 2024, as noted by The Guardian, though rising unemployment and deep cuts to public services have fueled widespread dissatisfaction.
Support from Trump has proven to be a mixed blessing. While the $20 billion swap deal boosted market confidence, Trump’s statement—"if he doesn't win, we're not going to waste our time"—triggered peso volatility and highlighted Milei’s dependence on U.S. support, as reported by the Los Angeles Times. The peso’s value has swung dramatically, with currency controls and a 90-day halt on dollar resales failing to stop speculative trading via stablecoins, according to
a Bitget report
. Digital currencies, once seen as experimental, have become a crucial tool for Argentines seeking protection from inflation, with platforms such as Bitso noting sharp increases in stablecoin transactions.
Despite the strong mandate, significant hurdles remain. Milei’s administration is under scrutiny over alleged corruption links involving his sister Karina Milei, raising alarms previously reported by The Guardian, while the collapse of a government-backed cryptocurrency has intensified the challenges, as detailed in an
Al Jazeera feature
. Political commentators caution that Milei’s combative approach and a fragmented opposition could complicate efforts to form alliances, the Al Jazeera feature added. “The administration must address economic strains and rebuild public confidence,” said Carolina Barry, a political science expert, as cited in that Al Jazeera article.
Market response has been guardedly positive. The peso saw a rebound on crypto exchanges, according to
Yahoo Finance
, while UBS analyst Alejo Czerwonko remarked that the election’s impact was “not yet fully reflected,” predicting greater stability for Argentina’s risk assets, as reported by
Investing.com
. Nevertheless, deep-rooted problems—such as sovereign debt, currency instability, and social unrest—persist. Milei’s promise to “make Argentina great again,” as referenced by the Los Angeles Times, depends on his ability to balance fiscal restraint with economic growth, a delicate act in a country long accustomed to financial volatility.