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Argentina’s legislative midterm elections delivered a decisive victory for President Javier Milei on Sunday, solidifying his mandate to continue the country’s most aggressive economic overhaul in decades. With early results showing overwhelming support for his libertarian agenda, Milei’s La Libertad Avanza (LLA) party is set to expand its influence in Congress and accelerate his sweeping fiscal and regulatory reforms.

The results mark a historic shift in Argentina’s political landscape. In Buenos Aires province — traditionally a Peronist stronghold — La Libertad Avanza captured 41.5% of the vote, surpassing the Peronist coalition’s 40.8%, according to official figures. Nationwide, Milei’s bloc secured 64 seats in the House of Deputies, a substantial gain from 37 seats previously.

“This is a resounding message from the Argentine people,” Milei said in a post-election address. “They have chosen freedom, responsibility, and the end of economic decay.”

Milei Strengthens His Grip on Power

The midterm elections saw 127 of 257 seats in the lower Chamber of Deputies and 24 of 72 Senate seats up for grabs. Before the vote, Milei’s government operated with a small minority — just 37 deputies and six senators — limiting his ability to pass legislation. The latest results now give him the political momentum needed to advance his economic overhaul and block opposition efforts to reverse his reforms.

Political analysts say that surpassing 35% of the national vote was the threshold Milei needed to consolidate power and forge alliances with centrist and conservative blocs, particularly the PRO party led by former President Mauricio Macri.

Sources close to the administration hinted that a cabinet reshuffle is expected following the elections, with several members of the PRO possibly joining Milei’s economic team to strengthen governance and policy execution.

Economic Reforms and Investor Reaction

Milei’s reform agenda — built on aggressive spending cuts, privatization, and deregulation — has already produced measurable results. Monthly inflation, which soared to 12.8% before Milei took office, dropped sharply to 2.1% in September. His administration also achieved Argentina’s first fiscal surplus in more than 12 years, drawing praise from international investors and the White House.

U.S. President Donald Trump’s administration has backed Milei with a $40 billion bailout package, including a $20 billion currency swap and a $20 billion debt investment facility designed to stabilize Argentina’s financial system. White House officials have privately indicated that Sunday’s strong election results reaffirm confidence in Milei’s leadership and the sustainability of his reforms.

Markets are expected to react positively when trading opens on Monday. Analysts predict that Argentine bonds and equities could rally sharply as investors bet on faster deregulation and deeper fiscal adjustments.

“Markets thrive on political stability, and Milei’s win provides just that,” said Diego Ferrer, an economist at Capital Economics Buenos Aires. “This gives him the credibility to push ahead with tough but necessary reforms — even if it means short-term pain.”

Public Frustration and Challenges Ahead

Despite his economic successes, Milei faces growing discontent at home. His austerity measures have led to steep reductions in subsidies, layoffs in public institutions, and widespread protests in major cities including Buenos Aires, Córdoba, and Rosario. Public opinion polls taken before the election showed Milei’s approval dipping below 50%, partly due to frustration over rising living costs and a corruption scandal involving his sister and chief of staff, Karina Milei.

Still, the election results suggest that many Argentines are willing to endure short-term hardship in exchange for long-term stability. Milei has promised to slash inflation to below 1% per month by mid-2026 and restore the peso’s credibility through monetary reform.

Economists expect the administration to announce a controlled devaluation of the peso soon, arguing that the currency has been artificially supported to contain inflation. “A correction is inevitable,” said Ferrer. “But with strong electoral backing, Milei now has the political capital to do it responsibly.”

A Turning Point for Argentina

Sunday’s landslide has not only bolstered Milei’s domestic standing but also repositioned Argentina in global markets. International observers see his success as a sign that Argentina — long mired in inflation, debt crises, and political gridlock — may finally be on the path toward fiscal discipline and sustainable growth.

For now, President Milei stands emboldened by a clear message from voters: Argentina is ready to embrace radical change, no matter how painful the transition may be.