President Donald Trump has made it clear that the United States’ $20 billion financial aid package to Argentina is contingent on the electoral success of the country’s libertarian leader, Javier Milei. During a meeting at the White House, Trump emphasized that the US would not ‘waste our time’ with Argentina if Milei’s party fails to secure victory in the upcoming midterm elections. Milei, who has been a staunch advocate of free-market reforms, praised Trump for his efforts in fostering economic prosperity and peace. The financial aid, announced as a currency swap, is intended to stabilize Argentina’s faltering economy, which has been plagued by inflation and a depreciating peso. However, Trump’s explicit linkage of the aid to Milei’s electoral prospects has raised eyebrows, given his previous stance against foreign interference in elections. Milei’s party, La Libertad Avanza, has faced challenges in recent provincial elections, and several corruption scandals have further weakened its position. The outcome of the midterm elections could significantly impact Milei’s ability to push through further reforms, as his government lacks a majority in Congress. Despite the US intervention, financial markets remain skeptical about its potential to bolster Milei’s electoral chances. The aid package, while intended to prevent a financial crisis, has also sparked concerns about its political implications and whether it will resonate with ordinary Argentines, many of whom are weary of Milei’s austerity measures. These measures, though credited with reducing inflation and the deficit, have led to significant cuts in pensions, education, health, and infrastructure, causing widespread social discontent.
Trump says US will not ‘waste our time’ helping Argentina if Milei loses
