Embattled Milei faces critical midterm elections in Argentina

In midterm legislative elections, voters in Argentina will be able to determine whether or not they support President Javier Milei’s extensive free-market reforms, which have caused many people’s austerity pains, at a crucial time in his presidency.

On Sunday, elections are taking place for 127 seats in Argentina’s lower chamber of deputies and 24 seats in the Senate. The outcome will determine how long Milei’s libertarian plan, which includes severe budget cuts and attempts to deregulate the nation’s struggling economy, will last.

Less than 15% of the seats in Congress are held by Milei’s La Libertad Avanza party, a relatively new political force in Argentina.

To help defend against opposition attempts to thwart the president’s agenda, to boost investor confidence, and, crucially, to keep Milei’s support from fellow right-winger Donald Trump, the party is aiming to increase that share to at least a third of the seats in Congress.

At a final campaign event held on Thursday in Rosario’s port city, Milei urged supporters to “keep moving forward.” “We’re going forward,” the statement read.

US in the lead

Washington earlier this month committed to a $ 40 billion bailout, including a $ 20 billion currency swap to stabilize the peso’s value, and a potential $ 20 billion “facility.”

Trump has threatened to withdraw if his populist ally performs poorly, warning that “we are not going to waste our time because you have somebody whose philosophy has no chance of making Argentina great again.”

Many Americans are unsure of Trump’s “America First” credentials, and his bailout plans have irritated US farmers who are fighting against China.

Why would the USA help bail out Argentina while they take the country’s largest market, asked US Senator Chuck Grassley from Iowa recently? “?

Despite concerns from US soybean producers, a reporter asked Trump on October 19 why he had chosen to support Argentina.

Trump responded, “Argentina is fighting for its life.” You have no knowledge of it, young lady. They lack any funds. They are without anything.

The left-wing and centrist opposition to Milei’s party currently controls both chambers in Argentina, with the Peronist opposition movement currently accounting for the majority of the vote in both houses.

Inflation war

In December of this year, Milei, a self-declared “anarcho-capitalist,” took the helm of Argentina’s struggling economy by using a chainsaw as a sign of his desire to radically reduce state spending.

Tens of thousands of public sector jobs were lost during his presidency, and public works projects were halted.

Although the austerity measures have slowed monthly inflation from 12.8% before Milei’s inauguration to 2.1% last month, they have been blamed for causing millions of people to become more impoverished.

In addition, Congress has stymied many of Milei’s signature initiatives, including those that seek to privatize state-owned businesses.

Members of Milei’s inner circle have been the subject of scandals, including one involving his sister, who also serves as his chief of staff, which has added to his issues.

Downgraded approval ratings

According to experts, Milei’s party will struggle to capture a third of the seats up for grabs as his approval numbers are falling and his allies lost in the bellwether provincial elections in Buenos Aires last month.

The US bailout, according to Oxford Economics’ Latin America economist Mauricio Monge, was “not sufficient to counteract the growing likelihood that the election results will prevent further reforms.”

Source: Aljazeera