Argentina: Javier Milei wins midterm elections by a landslide, promises more reforms

The party of Argentine ultraliberal President Javier Milei won the midterm parliamentary elections on Sunday, with just over 40% of the vote nationwide, according to official results that are 90% partial.

The militarist party La Libertad Avanza (La Liberty Avanza) received 40.84% ​​of the vote nationally, according to partial results announced by Cabinet chief Guillermo Francos. It is ahead of Fuerza Patria, a bloc representing a large part of the Peronist opposition (center-left), with 24.50%.

These mid-term elections are crucial for the president, now assured of strengthening his parliamentary base (so far 15% of MPs, 10% of senators). This will increase his ability to reform and deregulate a fragile economy in the midst of financial turmoil during his remaining two years as president.

Javier Milei had estimated that winning a third of the seats, in a parliament where neither chamber has an absolute majority, would be a "good figure," a threshold that would allow him, in particular, to impose his presidential vetoes on parliamentarians. An exact projection of seat gains was not initially available Sunday evening based on partial results.

The run-up to the elections has seen intense pressure on the Argentine currency, the peso, in recent weeks, reflecting the distrust of financial markets, which consider it overvalued, and their concern about maintaining the austerity course in the event of an electoral setback for Javier Milei.

Several times in October, the U.S. Treasury intervened in the foreign exchange market to buy the peso and prevent its fall . This caused many Argentines to fear the imminence of a devaluation, or a sharp depreciation, after the elections. "No," Economy Minister Luis Caputo insisted Sunday after his vote. "Monday will be a day like any other, neither the economic program nor the exchange rate regime will be changed."

Many analysts believe that beyond the election result, Javier Milei "will have to take a pragmatic turn," as political scientist Lara Goyburu predicts. "He will have to regain the negotiating skills that allowed him to pass legislation" at the start of his term.

After his landslide victory, Argentina's ultraliberal president hailed a "tipping point" and promised to "advance on the reformist path" toward "building a greater Argentina." However, in his victory speech, Javier Milei appeared to extend a hand to some of the opposition, stating that "there are dozens of deputies and senators with whom we can reach basic agreements" on reforms.