News|ElectionsEmbattled Milei faces critical midterm elections in ArgentinaThe outcome of the elections could determine the future of Milei’s economic programme and a vital $40bn US bailout.
Voters in Argentina will participate in midterm legislative elections on Sun, Oct 26, 2025, to assess support for President Javier Milei's free-market reforms. These elections involve half of Argentina's lower Chamber of Deputies, totaling 127 seats, and…
Voters in Argentina will participate in midterm legislative elections on Sun, Oct 26, 2025, to assess support for President Javier Milei's free-market reforms. These elections involve half of Argentina's lower Chamber of Deputies, totaling 127 seats, and a third of the Senate, with 24 seats at stake. The results may influence the continuation of Milei’s economic strategies, which include significant budget reductions and efforts to deregulate the economy.
The La Libertad Avanza party, led by Milei, currently holds 37 deputies and six senators, constituting less than 15% of the congressional seats. The party aims to increase its representation to at least a third of the seats, which is crucial for defending against opposition efforts to block the president’s agenda, boosting investor confidence, and maintaining support from international allies.
Earlier this month, the United States pledged a potential $40 billion bailout to Argentina, including a $20 billion currency swap to stabilize the peso. However, this support is contingent on Milei's performance in the elections, as indicated by US statements that emphasize alignment with the current administration's policies.
President Milei, who assumed office in Dec 2023, has implemented austerity measures aimed at reducing state expenditure. This has included the elimination of numerous public sector positions, cuts in education, health, and pensions, and a freeze on public works. These policies have reduced inflation rates from 12.8% to 2.1% but have also affected economic growth and consumption negatively.
These elections involve half of Argentina's lower Chamber of Deputies, totaling 127 seats, and a third of the Senate, with 24 seats at stake.
Despite these efforts, several of Milei's key proposals, such as the privatization of state-owned enterprises, have faced resistance in Congress. Additionally, internal challenges have emerged, with members of Milei’s administration being implicated in scandals.
Currently, both legislative chambers are dominated by the opposing left-wing and centrist parties, with the Peronist movement holding the largest minority share. This political composition presents a challenge to Milei's reform agenda.
With declining approval ratings and recent losses in regional elections, Milei's party faces challenges in securing a third of the available seats. Observers suggest that the US financial aid may not suffice to ensure the continuation of Milei's reforms if political support diminishes following the election outcomes.
Based on reporting by Al Jazeera.