The new president’s mandate will soon be tested by Argentina’s midterm elections. As a libertarian chief, he has implemented sweeping free-market reforms since assuming office. With the elections approaching, Milei’s government is seeking to defend its austerity measures, while the opposition aims to challenge his policies amid rising public concerns about inflation and living conditions.
His administration has forced the pace by radicalizing the implementation of upstart pioneer Milei-style economic reforms in just two short years. They eliminated import restrictions, reviving sales for luxury car dealerships across the northern bank of the Riachuelo River. It’s little wonder then that his government has cut tens of thousands of public sector jobs and slashed state spending significantly. Under layers of deadly smoke, these actions have received huge backlash from all sides of society, as well as heaps of praise.
Economic Reforms and Public Sentiment
Milei’s plan for economic upheaval sees drastically less government intervention in the market and promotes foreign investment. His administration has lifted restrictions on online dollar sales. That huge monetary policy shift wants to get the chronically depreciating peso stabilized. These welcome measures have not been without their difficulties.
Public sentiment toward Milei’s administration remains mixed. Although many of the city’s inhabitants applaud the changes, a growing chorus of critics accuses the city of jacking up their cost of living.
“You can’t live on 290,000 pesos a month with today’s inflation,” said Epifanía Contreras, reflecting the struggle many face under current economic conditions.
Supporters like Fernanda Díaz tell us that there is a sense of euphoria among Milei’s supporters in their social circle. They acknowledge the damage she’s done. At the same time, she understands the deeper, national concern in the general public about their economic security.
“When I step outside it, I see people worried about making it to the end of the month,” she remarked.
Political Landscape and Upcoming Elections
As the midterm elections approach, Javier Milei’s government aims to secure enough seats in Congress to uphold its controversial austerity measures and implement further reforms. His present administration was able to win with 42% of the votes, in the municipality of Avellaneda, during the 2023 elections. This outcome reflects a deep appreciation of and support for his policies.
On both labor and tax reforms, Milei’s team is pushing reforms that meet their radical libertarian ideological purity test. The boards’ fates these elections are likely to be important for the balance of power and these state boards’ abilities to push forward their legislative agenda. As such, Milei’s approval ratings have been incredibly volatile. Meanwhile, other sectors are starting to long for the days of overly redistributive policies of the main opposition Peronist party.
Third, the political landscape is complicated by a host of third-party pressures. Recently, U.S. President Donald Trump threatened to rescind a $20 billion aid package for Argentina if Milei suffers a defeat in the upcoming elections, highlighting the international implications of domestic politics.
Foreign Investment and Support
Milei’s policies have attracted a historic amount of foreign capital, including from the oil boom. Executives have consistently lauded his push to create a better overall business climate. Luciano Naredo, an advocate for Milei’s approach, expressed confidence in U.S. support and its impact on Argentina’s growth.
“I’m proud of the US support. It helps us grow stronger,” Naredo stated, adding that he believes Argentina is finally reclaiming its position on the global stage.
While the new economic reforms have increased interest from foreign investors, they have widened the social divide. Other European citizens understandably vent anger at their governments’ austerity measures and wonder out loud how these are in any way sustainable.
Matías Paredes commented on the cyclical nature of political promises in Argentina:
“Each new government comes in, criticizes the last one, promises to do things differently and ends up being the same or worse.”
