Surprise victory for Argentina's head of state Milei in congressional elections

Despite corruption scandals surrounding him and a weakening economy, Argentina's ultra-liberal President Javier Milei achieved a surprising victory in the midterm elections for Congress. His party, "La Libertad Avanza" (Freedom Advances), secured just over 40 percent of the vote, according to the electoral office after almost all votes had been counted. The left-wing opposition received just under 32 percent. Despite compulsory voting, voter turnout was just 68 percent.

"Today is a historic day. The Argentine people are leaving decline behind and choosing progress," Milei told his supporters. "Today begins the construction of a great Argentina." He announced his intention to continue his reform agenda and called on the provincial governors to cooperate.

The vote, which saw half of the Chamber of Deputies and one-third of the Senate reappointed, was also seen as a test of public opinion halfway through Milei's presidency. While his tough austerity policies have managed to balance the budget and reduce inflation, the hoped-for economic recovery has so far failed to materialize.

Until now, Milei had only a few members of his party in the Chamber of Deputies and the Senate. Recently, he has largely governed by decree, but his legislative initiatives have repeatedly been blocked in Congress. Thus, Milei's ambitious reform agenda has stalled.

With Sunday's result, Milei and his allies in Congress could secure at least a third of the seats. This would provide the necessary quorum to defend his presidential veto against parliamentary resolutions. He can also view the vote as a mandate to further advance the country's liberalization.

The positive election result is also likely to reassure Milei's allies in Washington. The US government recently provided the heavily indebted country with additional liquidity through a currency swap worth $20 billion. In an unusual move, the Treasury Department in Washington also purchased pesos on a large scale to support the exchange rate of the Argentine national currency.

US President Donald Trump made his aid to Argentina contingent on Milei's victory in the midterm elections. "If he loses, we will no longer be generous," Trump said during a recent visit to Milei at the White House. Now, the Argentine has finally delivered.

But the underlying problems of South America's second-largest economy remain. Despite the initial successes of Milei's reform program, the economy is struggling to take off. Many people have lost their jobs, and investors are holding back due to the uncertain situation. Industrial production has collapsed due to poor competitiveness and cheap imports, and the inflation rate is still over 30 percent per year. Argentina is also burdened with over $300 billion in foreign debt.

In addition, several corruption scandals surrounding Milei are damaging his image as an independent political rebel who wants to be completely different from the South American country's establishment. Milei himself also promoted the cryptocurrency $LIBRA on Platform X. Shortly thereafter, the initiators sold their shares, the value plummeted, and investors lost an estimated $200 million.

His sister and chief political advisor, Karina Milei, is accused of demanding bribes for government pharmaceutical orders for the disabled. She denies the allegations. Shortly before the election, Milei's leading candidate in Buenos Aires Province, José Luis Espert, also dropped out of the race. It had previously been revealed that Espert had received a $200,000 consulting fee from a businessman wanted in the United States for drug trafficking.