BUENOS AIRES, Oct 26 (Reuters) – Argentines are voting in legislative elections that will decide whether President Javier Milei can push ahead with his radical free-market reforms and austerity agenda. The vote will determine if he gains enough support in Congress to continue his economic overhaul.
Milei’s party, La Libertad Avanza, aims to expand its small minority in both chambers. A stronger showing could boost investor confidence and reassure U.S. President Donald Trump, who recently backed a major financial package for Argentina but warned that future support may depend on Milei’s performance.
At a closing rally in the port city of Rosario on Thursday, Milei urged supporters to stay optimistic. “Don’t give up because we’re halfway there,” he said. “We’re on a good path.”
Congressional stakes and voter mood
Half of Argentina’s lower Chamber of Deputies — 127 seats — and one-third of the Senate — 24 seats — are being contested. The Peronist opposition still holds the largest minority in both houses, while Milei’s year-old movement controls just 37 deputies and six senators.
The government has won praise from Washington and global investors for cutting monthly inflation from 12.8 percent before Milei took office to 2.1 percent last month. It has also achieved a fiscal surplus and pushed through sweeping deregulation.
Yet public anger over sharp spending cuts and a corruption scandal involving Milei’s sister and chief of staff has hurt his popularity. “Milei’s adjustment has been done with treachery and cruelty,” said Buenos Aires Governor Axel Kicillof at a Peronist campaign event. “They enjoy each victim of the cuts.”
Political risks and possible outcomes
Analysts say winning more than 35 percent of the vote would strengthen Milei’s hand and help him form alliances with centrist blocs to block attempts to reverse his reforms.
Milei has hinted at a cabinet reshuffle after the election that could bring in figures from the centrist PRO party, which often cooperates with his government in Congress. On Monday, Foreign Affairs Minister Gerardo Werthein resigned, fueling speculation about further changes.
The election is being closely watched by the White House. Trump’s proposed $40 billion rescue package for Argentina includes a $20 billion currency-swap line and a $20 billion credit facility.
Economic outlook and currency pressure
Economists warn that Argentina’s peso remains overvalued despite government efforts to stabilize prices. Many predict a devaluation after the vote, especially if Milei’s party underperforms.
A weaker result could trigger a sharper adjustment in foreign-exchange policy, potentially testing investor confidence in Milei’s promise to restore long-term stability.
The report was originally published by Reuters.