Argentina’s voters are heading to the polls in midterm parliamentary elections to gauge support for President Javier Millei’s sweeping free market reforms. President Javier Millay is at a critical juncture in his presidency, with austerity causing suffering for many.
Elections for 127 seats, half of Argentina’s lower house, and 24 seats, one-third of the Senate, will be held on Sunday. The outcome could determine whether Millais’ liberal plan to slash budgets and deregulate the country’s struggling economy endures.
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Millay’s party, La Libertad Avanza, is a relatively new political force in Argentina, but with only 37 members and six senators, it accounts for less than 15% of the seats in parliament.
The party aims to increase this share to at least one-third of Congress in order to fend off opposition attempts to block the president’s policies, boost investor confidence and, importantly, maintain Milley’s support from fellow right-wing President Donald Trump.
“Don’t give up just because you’re still halfway through,” Millay told supporters at a closing campaign event in the port city of Rosario on Thursday. “We are on a good path.”
US supports the front
Earlier this month, Washington promised a potential $40 billion rescue package, including a $20 billion currency swap and a potential $20 billion “facility” to stabilize the value of the peso.
But Trump threatened to pull out if his populist allies performed poorly, warning: “If he doesn’t win, we’re not going to waste our time, because we have someone with a philosophy that has no chance of making Argentina great again.”
President Trump’s relief plan has infuriated U.S. farmers struggling with the trade war with China, and many are questioning his “America First” credentials.
U.S. Sen. Chuck Grassley of Iowa recently summed up his concerns: “Why would the US help bail out Argentina if Argentina is taking away the biggest market for US soybean producers??”
On October 19, a reporter asked President Trump why he decided to support Argentina despite concerns from U.S. soybean producers.
President Trump responded, “Argentina is fighting for its life.” “Miss, you don’t know anything about it. . . . They don’t have any money. They don’t have anything.”
Both houses of Argentina’s parliament are currently controlled by leftists and centrists opposed to Mr Millei’s party, with the Peronist opposition movement currently making up the largest minority in both chambers.
fight against inflation
Mr. Millay, a brash and self-proclaimed “anarcho-capitalist,” will take power in December 2023, brandishing a chainsaw as a symbol of his intention to slash state spending and vowing to revitalize Argentina’s long-sluggish economy.
His presidency has resulted in the loss of tens of thousands of public sector jobs, cuts in spending on education, health care and pensions, and a freeze on public services.
Austerity measures have been blamed for pushing millions further into poverty, but monthly inflation has fallen from 12.8% before Milais took office to 2.1% last month, despite weak economic growth and consumption.
Meanwhile, many of Milley’s key policies, including bids to privatize state-owned enterprises, have been blocked by Congress.
To add to Millay’s predicament, members of her inner circle are embroiled in scandals, including that of her sister, who is also her chief of staff.
Support rate decline
Experts predict that the party will struggle to reach its target of one-third of the seats after Milay’s approval ratings have declined and his allies lost in last month’s Buenos Aires provincial elections.
Mauricio Monju, Latin America economist at Oxford Economics, told AFP that the US relief package “is not enough to counteract the growing likelihood that the election outcome will block further reforms.”
“If history has taught us anything about Argentina, it is that previous remedies when political support waned were futile,” he said.
