Argentine President Javier Milei has stunned the world with a sweeping victory in the country’s midterm elections, held on October 26, 2025, just a month after his much-publicized visit to the Rebbe’s Ohel in New York. The win, which saw Milei’s party, La Libertad Avanza (Liberty Advances), secure about 40.8% of the national vote, has not only rewritten Argentina’s political map but also sent shockwaves through global financial and political circles, according to reports from multiple outlets, including Aviation Daily and International Socialist.
The scale of the victory caught both supporters and critics off-guard. Analysts in Buenos Aires and beyond have noted that the result far exceeded even Milei’s own expectations. As the president himself admitted, his team entered the race with considerable trepidation, especially after recent polling setbacks and the country’s persistent economic woes. “Now we are focused on carrying out the reforms that Argentina needs to consolidate growth and the definitive takeoff of the country – to make Argentina great again,” Milei declared, framing the win as a “tipping point” in the nation’s history.
The midterm elections were significant in scope: half of the 257 seats in the Chamber of Deputies (the lower house) and 24 of the 72 Senate seats were up for grabs. La Libertad Avanza emerged with 64 seats in the lower house, a dramatic leap from the 37 seats it held previously. This newfound political leverage is critical for Milei, who has struggled to push through his ambitious reforms amid fierce opposition and limited legislative support.
One of the most notable aspects of this election was the record low voter turnout, the lowest since Argentina’s return to democracy in 1983. Some observers, as reported by International Socialist, attributed this to a sense of disillusionment among voters, particularly those aligned with the center-left Peronists. The Peronists, who had recently triumphed in provincial elections in Buenos Aires, failed to mobilize their base for the national contest, a miscalculation that proved costly.
Milei’s platform has been nothing if not radical. Since assuming office at the end of 2023, he has unleashed a wave of austerity measures: slashing public spending, cutting pensions, reducing subsidies for transport, heating, and electricity, deregulating markets, attacking labor and democratic rights, and privatizing state enterprises like IMPSA. These policies, while controversial and met with resistance from trade unions and grassroots activists, have had a tangible impact on Argentina’s economic indicators. Yearly inflation, which soared above 200% last year, had plummeted to 32% by September 2025, a dramatic turnaround that many attribute to Milei’s fiscal discipline.
Yet, the economic picture remains far from rosy. While the end of 2024 and the beginning of 2025 saw a brief recovery, Argentina’s GDP began to contract again by the second and third quarters of this year, signaling a return to recession. Monthly inflation, though much lower than before, crept back up to 2.7% in October, after hitting a low of 1.5% in May. Compounding these issues were a series of corruption scandals, including a cryptocurrency scam promoted by Milei himself and bribery allegations against his sister, Karina Milei, a key government figure.
Despite these headwinds, Milei’s victory was bolstered by high-profile international support. Former US President Donald Trump was quick to claim credit for the outcome, stating, “He had a lot of help from us. I gave him a very strong endorsement.” Trump’s influence extended beyond words; according to International Socialist, the US Treasury stepped in with a substantial loan package, buying pesos directly on the market and arranging a $20 billion currency swap (expandable to $40 billion), on the explicit condition that Milei win the election. Trump himself remarked, “We are sticking with a lot of the countries in South America. We focus very much on South America.”
This financial lifeline from Washington was crucial for Milei, whose government had been struggling to shore up Argentina’s dwindling reserves and stabilize the peso. Earlier in the year, Argentina had secured a $20 billion loan from the International Monetary Fund (IMF) and an additional $10 billion from the World Bank, but these measures only bought temporary relief. As of the second quarter of 2025, Argentina’s external debt had swelled to a record $305 billion, including $55 billion owed to the IMF.
The political implications of Milei’s win are profound. With over a third of the seats in Congress, his party now wields enough power to block attempts to overturn presidential vetoes, even if it still falls short of an outright majority. This new balance of power is expected to embolden Milei to press ahead with his economic agenda, which includes further spending cuts, deregulation, and privatization. One sector expected to benefit from policy continuity is aviation; Aviation Daily noted that Milei’s victory should preserve the liberalization of Argentina’s air sector, a move welcomed by many in the industry.
However, resistance to Milei’s policies remains strong. Workers and youth have continued to organize general strikes and protests throughout his presidency, with the Peronist-led trade union bureaucracy oscillating between confrontation and negotiation. The Workers Left Front Unity (FITU), a socialist coalition, made notable gains in the election, winning three seats in the lower house and capturing 9.1% of the vote in Buenos Aires city, making it the third largest political force in the capital and province.
Internationally, the election has highlighted the growing competition between the US and China for influence in South America. While Argentina has previously relied on Chinese currency swaps—most recently activating $5 billion in 2024 and renewing the arrangement in 2025—Milei’s pivot toward the US reflects both geopolitical calculations and personal alliances. Argentina’s vast natural resources, including the Vaca Muerta shale formation and significant lithium reserves, add another layer of strategic importance to the country’s economic and political trajectory.
For now, Milei’s victory represents a dramatic shift in Argentina’s political landscape, one that promises both opportunity and uncertainty. Whether his reforms will deliver lasting prosperity or deepen existing divides remains an open question. What’s clear is that Argentina stands at a crossroads, with its future direction hanging in the balance.
