BUENOS AIRES, Argentina — The upcoming midterm elections in Argentina have taken on heightened significance, as President Javier Milei faces mounting pressure from both domestic and international fronts. Initially perceived as a routine legislative vote, the election has now become a pivotal moment that could determine the future of Milei’s ambitious free-market reforms. The stakes were further escalated when former U.S. President Donald Trump linked financial aid to Argentina’s electoral outcome, adding a layer of geopolitical tension to the race.
Milei, a libertarian leader and close ally of Trump, came to power promising to dismantle Argentina’s entrenched political corruption and implement sweeping economic reforms. Early in his tenure, his policies delivered notable successes, including Argentina’s first fiscal surplus in nearly 15 years and a significant reduction in inflation. These achievements bolstered his popularity, allowing him to champion his anti-socialist agenda on the global stage, from Europe to Trump’s Mar-a-Lago club.
However, Milei’s political fortunes have taken a sharp downturn in recent months. A series of scandals, including allegations of corruption involving his sister and the withdrawal of a key candidate linked to a U.S. drug trafficking case, have tarnished his image as a reformist outsider. Tactical missteps, such as failing to build coalitions and alienating potential allies, have further weakened his position. The opposition-dominated Congress has overturned his vetoes and passed spending measures, complicating his reform agenda.
As Argentines grapple with the harsh realities of austerity measures, public support for Milei has waned. His party’s recent electoral defeat in Buenos Aires province, home to 40% of the population, underscored this shift. The loss triggered a sell-off of Argentine bonds and the peso, prompting the U.S. to intervene with a $20 billion currency swap and promises of additional financial support. Yet, these measures have failed to stabilize the peso, which hit a record low against the dollar.
Trump’s conditional aid has sparked backlash both in Argentina and the U.S., with critics questioning the wisdom of propping up a nation with a history of defaults. In Argentina, the opposition Peronist party has seized on Trump’s remarks to rally voters against Milei, framing the election as a referendum on national sovereignty. As the country heads to the polls, the outcome will not only shape Milei’s political future but also test the resilience of his free-market experiment in a nation weary of economic instability.