Argentina’s political landscape was rocked on Sunday, September 7, 2025, as President Javier Milei’s libertarian project suffered a resounding defeat in Buenos Aires province, the nation’s most populous and economically significant region. The center-left Peronist opposition, led by incumbent governor Axel Kicillof, secured a commanding victory, capturing 46.8% to 47% of the vote with most ballots counted, compared to just 33.8% to 34% for Milei’s La Libertad Avanza (LLA) party, according to official tallies reported by multiple outlets including Reuters, AFP, and Devdiscourse.
For President Milei, who swept into office in December 2023 on promises of radical economic reform and a “chainsaw” approach to government spending, the result was a sobering wake-up call. The loss not only exceeded the margin predicted by pre-election polls but also arrived at a pivotal moment, just six weeks ahead of Argentina’s crucial national midterm elections. Buenos Aires province alone accounts for more than 30% of the country’s GDP and about 40% of its electorate, making it a bellwether for the nation’s political mood.
Standing before supporters at his coalition’s headquarters in Mar del Plata, a visibly subdued Milei acknowledged the “clear defeat,” telling his party faithful: “If anyone wants to begin rebuilding and moving forward, the first thing they must do is accept the results. They were not positive. We suffered a setback, and we must accept it responsibly.” Despite the disappointing outcome, Milei insisted he would not be deterred from his libertarian agenda. “The course will not change, it will be redoubled,” he declared, vowing to “deepen and accelerate” the reforms that have defined his presidency so far.
Since taking office, the 54-year-old economist has launched an aggressive campaign to slash public spending, deregulate the economy, and reduce the size of the state. Tens of thousands of public sector workers have lost their jobs, and government programs have been cut or eliminated in a bid to balance Argentina’s chronic fiscal deficit. While these measures have helped ease inflation and erase some of the deficit, they have also fueled rising unemployment and public anger, especially among vulnerable groups.
The election loss comes at a time of mounting pressure on Milei’s administration, both from economic headwinds and political scandal. The government has been rocked by a bribery controversy involving the National Disability Agency, where Milei’s sister and chief advisor, Karina Milei, has been implicated. The scandal erupted into public view in late August, when protesters hurled stones at Milei and his sister during a campaign stop on the outskirts of Buenos Aires. The incident underscored the growing frustration among Argentines, many of whom see the president’s austerity drive as both harsh and, increasingly, tainted by allegations of corruption.
Just days before the election, Congress dealt Milei another blow by overturning his veto of a law increasing allowances for disabled people, highlighting the limits of his power in a legislature now dominated by opposition Peronists. The Peronist bloc, emboldened by their Buenos Aires triumph, has passed a series of social spending measures that run counter to Milei’s libertarian vision. These developments have exposed the president’s difficulties in translating his ideological fervor into practical governance, especially in the face of entrenched political opposition and a skeptical public.
The Buenos Aires result was more than just a local setback—it was widely interpreted as a referendum on Milei’s economic policies and political style. As The Washington Post noted, while Milei has a clear vision of a minimal state and free-market reforms, that vision has yet to deliver tangible improvements for ordinary Argentines. The economy remains mired in recession, joblessness is climbing, and interest rates have hit record highs as the government struggles to prop up the peso and reassure jittery investors. Despite some progress on inflation, Milei’s administration has not yet built up the foreign reserves needed to restore confidence in Argentina’s ability to meet its debts.
Turnout in the Buenos Aires election was high, at around 63%, reflecting the high stakes and intense public interest in the contest. The 13-point gap between the Peronists and Milei’s LLA was far greater than most analysts expected. While some within Milei’s party tried to downplay the defeat by noting that LLA had increased its share of legislators, the overall message was clear: patience for economic shock therapy may be wearing thin among voters battered by years of crisis and now confronted with the realities of deep austerity.
Peronist leaders were quick to frame the victory as a popular rejection of Milei’s approach. As one Peronist candidate put it, the vote was a call for “a shift from confrontation to tangible results.” The opposition’s success in Buenos Aires, combined with their growing strength in Congress, could pose significant obstacles to Milei’s reform agenda in the months ahead.
For investors and international observers, the Buenos Aires election served as a critical barometer of Argentina’s direction. The worse-than-expected outcome for Milei’s party raised concerns about his ability to push through further reforms and stabilize the economy ahead of the October midterms. Some analysts warned that the result could galvanize the president’s rivals and further unsettle already nervous global markets.
Yet, despite the setbacks, Milei’s message to his supporters and critics alike was one of defiance. “We must learn from this (election defeat),” said Diego Valenzuela, an LLA candidate, in comments to AFP. He argued that the loss was the price of refusing to engage in “economic populism,” a veiled jab at the Peronists, whom Milei blames for Argentina’s chronic fiscal woes.
As Argentina heads toward the midterm elections in October, the political landscape remains highly volatile. The Peronist victory in Buenos Aires has energized the opposition and exposed the vulnerabilities of Milei’s project. With public trust shaken by scandal and economic pain, and with Congress increasingly assertive, the president faces an uphill battle to maintain his reformist momentum.
Argentina’s voters have sent a clear message: while they may be open to change, they are not prepared to endure endless austerity without results. The coming weeks will test whether Milei can adapt his approach, rebuild public confidence, and forge a path forward in a country long accustomed to political turbulence and economic uncertainty.