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Argentina’s Milei Faces Scandal And Protests Ahead Of Election

A corruption scandal and violent protests threaten President Javier Milei’s campaign as economic woes deepen and key elections approach in Argentina.

6 min read

As Argentina barrels toward a pair of pivotal elections, President Javier Milei finds himself battling on multiple fronts: a deepening corruption scandal, economic headwinds, and an increasingly restless public. In a dramatic week that saw campaign rallies devolve into chaos and allegations swirl around his inner circle, Milei’s bold libertarian experiment faces its most serious test yet.

On August 27, 2025, Milei and his sister, Karina Milei—who doubles as Secretary General of the Presidency and his chief political confidant—took to the streets of Lomas de Zamora in Buenos Aires Province for a campaign rally. The event, set against the official launch of Argentina’s legislative election campaign, was meant to energize supporters ahead of the Buenos Aires Province elections on September 7 and the national midterms on October 26. Instead, it quickly spiraled into turmoil. According to eyewitness accounts reported by Reuters, protesters hurled stones and bottles at the president’s convoy, chanting, “Away with Milei!” Security rushed the president and his sister from the scene. No casualties were reported, but the symbolism was hard to miss: the president, who once rode a wave of anti-establishment fervor, was now literally under siege.

The unrest did not end there. The following day, Karina Milei’s own campaign event was also marred by violence. Protesters clashed with pro-Milei supporters, shoving and shouting insults, leading to at least three arrests, according to the Associated Press. The heightened tensions reflected a broader sense of discontent simmering across the country, fueled by both political and economic anxieties.

At the heart of the current storm is a corruption scandal that strikes at the very core of Milei’s administration. Last week, local media published leaked audio recordings in which Diego Spagnuolo, the former director of Argentina’s National Disability Agency (ANDIS), allegedly discussed a kickback scheme benefiting Karina Milei and other senior officials. The scheme, according to the tapes, could have funneled up to $800,000 a month into the pockets of those close to the president.

President Milei responded swiftly, firing Spagnuolo from his post and publicly denouncing the allegations. Speaking to business leaders at a trade conference on August 28, he accused his political opponents—particularly the left-leaning Peronist opposition he derides as the “caste”—of orchestrating a smear campaign. “This week’s operation is nothing more than another item in the long list of schemes by the ‘caste,’” Milei declared, as quoted by the Associated Press. “Like all previous schemes, it’s another lie.” He further lamented, “We regret that judges have to waste their time on the most rancid political tricks instead of pursuing crime.”

Despite the president’s protestations, federal authorities have stepped up their investigation, raiding multiple homes and offices across Buenos Aires. No charges have been filed as of August 28, but the scandal has already cast a long shadow over Milei’s campaign. The president’s first public comments on the issue came only after several days of uncharacteristic silence—broken during a campaign event shortly before his evacuation amid stone-throwing protesters.

The timing could hardly be worse for Milei. The October midterm elections will determine the fate of a third of the Senate and half the Chamber of Deputies, offering his party, La Libertad Avanza (LLA), a rare chance to expand its modest presence in Congress. Currently, LLA holds just 6 of 72 Senate seats and 38 of 257 in the Chamber of Deputies—a far cry from the majority needed to push through the president’s ambitious agenda of tax, labor, and pension reforms.

But the opposition, led by the center-left Peronist coalition Unión por la Patria (UP), is hardly in fighting shape. According to a Pulso poll cited by GZERO, more than 40% of Argentinians are unsure who leads the opposition, while another 25% name former President Cristina Fernández de Kirchner, who is under house arrest for corruption and barred from politics for life. “The opposition is not only fragmented, it is leaderless,” Marcelo J. Garcia of Horizon Engage consultancy told GZERO. This vacuum, paradoxically, gives Milei a unique advantage: “Milei is the only national leader that controls his political space, his political party. So that really plays to his advantage.”

Even so, Milei’s grip on power is far from assured. The president’s radical economic policies—what he calls “shock therapy”—have won praise in some quarters for slashing Argentina’s chronic fiscal deficit and bringing down inflation. But the medicine has been bitter. Output has stagnated in 2025, the peso’s overvaluation has eroded the competitiveness of Argentine exports, and public sector pay has fallen in real terms. The central bank’s recent move to increase reserve requirements threatens to squeeze the economy further.

Public opinion reflects these strains. According to polls cited by Reuters, negative sentiment toward Milei surpassed 54% in August 2025. Analysts warn that rising protest sentiment, if left unaddressed, could erode the president’s support at the ballot box. “It won’t be a corruption scandal that does him in, it will probably be the economic problems,” said Eugenia Mitchelstein, a social sciences professor at the University of San Andrés, speaking to GZERO. “The corruption scandal doesn’t help.”

For Milei, the stakes could not be higher. A strong showing in October—winning, say, 40-42% of the vote—would reinforce his mandate and give him greater leverage in Congress, even if he falls short of a majority. “If he does well, it will confirm his intuition, and it will probably make him more Milei than ever,” Mitchelstein observed. On the other hand, a weaker performance might force a reckoning with both his governing style and policy priorities. “If he doesn’t get that many votes, say, 37-38%, it might actually lead him to rethink his government, and also the way he’s been ruling.”

Meanwhile, the government’s response to the protests and the corruption allegations remains under intense scrutiny. Milei has promised to sue Spagnuolo, the former disability agency head, calling his claims “lies.” Authorities continue to investigate the leaked audios, but as of now, the president’s inner circle remains officially uncharged. Still, the optics of the scandal—combined with scenes of the president and his sister being hustled away from angry crowds—have put the government on the defensive at a critical moment.

Argentina, a nation of over 47 million, is no stranger to political drama. But as the legislative campaign heats up, the outcome of these intertwined crises—corruption, economic malaise, and public unrest—could reshape the country’s political landscape for years to come.

With the eyes of the nation fixed on the upcoming elections, the coming weeks will reveal whether Milei’s libertarian revolution can weather the storm, or if the forces arrayed against him will finally break his momentum.

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