RIGHT-WING PARTY SECURES CRUCIAL VICTORY IN ARGENTINE MIDTERMS

On 26 October 2025, Argentina’s President Javier Milei secured a decisive legislative mandate in the Argentine Midterms, reinforcing his political position halfway through his term. The President’s party, La Libertad Avanza (hereinafter: LA), and its coalition partners achieved a strong performance, securing enough seats in the legislature to significantly advance the government’s radical economic agenda. The election was widely viewed as a national referendum on the government’s stringent austerity measures and free-market structural reforms, which were implemented to address decades of chronic fiscal deficit and high inflation (Yahoo News; Financial Times).

Electoral Outcome And Legislative Implications

Decisive Vote Share And Congressional Gains

The LA party’s electoral coalition secured approximately 41% of the national vote in the elections to renew almost half of the lower house and a third of the upper house. The outcome ensures that the LA bloc will comfortably secure the necessary seats to attain a one-third minority in both legislative chambers.

Achieving this one-third threshold holds significant institutional weight. It provides the government with the necessary legislative power to defend presidential vetoes against opposition attempts to reverse them. Furthermore, it significantly strengthens the government’s negotiating position with allied parties and reduces the procedural hurdles for advancing the second phase of its structural adjustment program, which includes substantial labour and tax reforms. Prior to the Argentine Midterms, President Milei’s party was in a precarious minority position, frequently struggling to pass legislation. This victory, therefore, alters the balance of power within the Argentine state.

Regional And Economic Significance

The election was scrutinised closely by international financial markets and political observers. The successful outcome is viewed as a sign of institutional stability that will likely increase investor confidence in the continuity of the government’s economic policies. The government has already achieved some of its primary fiscal goals, including reducing the inflation rate from a peak of nearly 290% in April 2024 to an annual rate of 32% by October 2025 (Financial Times). It has also achieved a fiscal surplus for the first time in over a decade.

However, the structural reforms have been accompanied by significant social costs, including cuts to state subsidies for public services and reductions in public works. The election effectively granted the government a mandate to continue demanding economic discipline from the society in pursuit of long-term fiscal stability. This economic approach, which involves comprehensive deregulation and privatisation, is a clear break from decades of policies championed by the left-leaning opposition movement, known as Peronism, which suffered one of its poorest performances in years in these Argentine Midterms.

Concluding Forecast/Outlook

The outcome of the Argentine Midterms confirms President Milei’s institutional legitimacy for the remainder of his term and grants him the political capital necessary to accelerate his economic reform agenda. Two key trajectories are now likely to define the nation’s immediate future.

The first, and most probable, trajectory is the rapid implementation of the second wave of structural reforms. With a strengthened position in the legislature, the government is expected to move forward with tax overhauls, labour deregulation and further privatisation efforts. This path relies on the government’s ability to maintain political alliances and ensure that the positive economic indicators, such as reduced inflation, translate into tangible improvements in the daily economic situation of the society before the next election cycle.

The second trajectory, while less likely after the win, involves a domestic backlash against the intensified austerity. Despite the electoral victory, the cost of living remains high for many segments of the society. If the government fails to manage the social consequences of its reforms or if the economic progress proves uneven, it could lead to increased social tension and large-scale public dissent. The stability of the government’s mandate will ultimately be tested by its ability to convert the political support gained in the Argentine Midterms into a sustained, broad-based economic recovery.