When Argentines go to the ballot box on Sunday for midterm legislative elections, a $20 billion bailout promised by the Trump administration to President Javier Milei hangs in the balance.
Mr. Milei, one of MAGA world’s favorite Latin American leaders, suffered big losses in local elections in the Buenos Aires province last month. There are growing concerns that his coalition could lose its legislative majority in Sunday’s midterm elections—a defeat that would effectively kill Mr. Milei’s economic reform policies.
President Trump has warned that the aid package is contingent on Mr. Milei’s party staying in power. Last week, Mr. Trump stated that America “won’t waste” time on Argentina if Mr. Milei suffers a defeat. “We would not be generous with Argentina if that happened. If he loses, we are not going to be generous with Argentina. We’re going to work very much with the president. We think he’s going to win,” Trump said.
Mr. Milei, a self-described “anarcho-capitalist,” sailed into office on a populist platform of economic reform after winning a landslide election in 2023. Since taking office, he has been working to curb runaway inflation and restore growth. Notably, he has wielded a chainsaw as a symbol of his cuts in public spending.
The president promised to lower taxes, cut government budgets, and end the stifling regulation that has hindered Argentina’s economic expansion. However, many citizens continue to feel economic pain amid these changes.
According to the International Monetary Fund (IMF), Mr. Milei’s policies have begun to reverse years of left-wing Peronism. Inflation has dropped from more than 200 percent to 35 percent—the lowest level in five years—and IMF projections estimate it could fall below 10 percent in the coming years.
Despite these promising signs, Argentina has faced a renewed selloff of its peso since last month’s local election outcome. The election losses have been largely blamed on government cuts that have negatively impacted the middle and lower classes.
Mr. Milei’s popularity has declined as purchasing power erodes and public services recede. Moreover, accusations of corruption have dogged his administration.
“I thought he would put an end to corruption, and today I feel completely disappointed,” said retired teacher Jacqueline Garrahan in an interview with AFP news agency. “Milei didn’t have all his ducks in a row, but we voted for him just the same. Now what do we do? Who do we vote for? It’s frustrating,” she added.
As Argentines prepare to cast their votes, the future of Mr. Milei’s economic reforms—and the crucial U.S. bailout—remain uncertain.
https://www.nysun.com/article/javier-mileis-economic-reforms-in-argentina-face-crucial-vote
