Post by : Rameen Ariff

In a sudden political reversal, Argentine President Javier Milei achieved a commanding victory in the midterm legislative races, reinforcing his authority to pursue an ambitious program of economic reform. The outcome was seen as a clear endorsement of his strict austerity approach, even as many citizens struggle with rising costs and reduced subsidies.

The result offers a significant revival for Milei, whose approval figures had fallen in recent weeks. Celebrations erupted across Buenos Aires as Milei announced the win, calling it a "triumph of courage and change." He thanked voters for backing his plan to remake the economy, saying Argentines refused to return to past policies he described as failures.

Commentators argue the vote reflects widespread concern about reverting to chronic instability. Milei’s measures have coincided with a sharp drop in inflation — from 12.8% at the start of his term to 2.1% last month — leading many to accept short-term pain for the prospect of lasting stability.

Analysts pointed out that winning roughly one-third of seats in the Chamber of Deputies strengthens Milei’s ability to sustain his agenda and to block efforts to overturn his vetoes. "This outcome surpasses what even the most hopeful Milei backers expected," said Marcelo Garcia, Americas director at Horizon Engage.

In Buenos Aires province, historically dominated by Peronists, Milei’s party La Libertad Avanza scored 41.5% of the vote versus the Peronist coalition’s 40.8%. Nationwide, the movement expanded its presence in the lower house to 64 seats, up from 37, marking a noteworthy realignment in Argentine politics.

The victory also drew international attention. Reports indicate the U.S. administration under President Donald Trump favors Milei’s market-oriented policies and has offered a $40 billion package, including a $20 billion currency swap and a proposed debt investment facility, signaling external confidence in his reform path.

Financial markets are expected to react positively when trading resumes on Monday, with experts forecasting gains in Argentine bonds and equities. "Investors welcome Milei’s strengthened political mandate," said economist Maria Laura Tagina, adding that the president now has greater leverage to accelerate reforms and attract foreign capital.

Facing criticism over tough spending cuts, Milei remained unapologetic and suggested he may reshuffle his cabinet to include more centrist allies and broaden his coalition. After voting in Buenos Aires, he waved to supporters and vowed a new chapter built on "discipline, freedom, and courage."

For many Argentines, the election was about more than politics — it represented hope that Milei’s bold experiment can finally steer the country away from chronic inflation and instability toward sustainable growth.

#Global, #Political