Argentinian President Javier Milei acknowledged a “setback” on Sunday after his libertarian party suffered a bruising loss in elections in the Buenos Aires province.
La Libertad Avanza, Milei’s reformist coalition that is viewed favorably by the Trump administration, has held a significant lead in the polls over the summer ahead of the country’s elections on Oct. 26, which could possibly shift the balance of power.
However, the party performed poorly against the Peronist Fuerza Patria coalition in elections in the Buenos Aires province over the weekend, winning only 34% of ballots to the opposition’s 47%, with most votes counted. While the region, which holds roughly 40% of all Argentine voters, is known to be anti-Milei and was expected to fall to the Peronist coalition, Libertad Avanz had hoped to make further inroads with voters to build momentum ahead of next month’s midterm elections.
“Buenos Aires province is traditionally very Peronist, but this margin is even worse than expected,” Alberto Ades, head of research at hedge fund NWI Management, told the Financial Times. “Markets will react on Monday with bonds and equities lower, and country risk moving higher.”
Axel Kicillof, the left-leaning governor of Buenos Aires and a leading critic of Milei, celebrated the results Sunday evening.
“The ballot boxes told Milei that public works cannot be halted,” he said. “They explained to him that retirees cannot be beaten, that people with disabilities cannot be abandoned.”
Milei, the firebrand libertarian, stunned political pundits in November 2023 when he won election to Argentina’s highest office. He has since sought to deepen ties with the Trump White House, including through a visit to the United States earlier this year, during which he spoke at a conservative conference in Washington, D.C.
Supporters credited Milei’s commitment to shifting his country away from a socialist mindset and toward a more free-market capitalist model. Milei’s support for massive cuts in government spending, slashing taxes, privatizing state-owned businesses, and scaling back rent-control regulations is responsible for taking one of the highest inflation rates in the world down to single-digit inflation. This ended the country’s economic recession, spurring housing solutions and enabling the government to see its first budget surplus in 14 years, according to proponents.
Amid the flurry of changes, Argentina’s poverty rates spiked to the highest level in nearly two decades, and unemployment rose as public sector jobs were slashed, prompting backlash from critics worried that Milei’s approach was unsustainable. Supporters have argued that the latest data suggested poverty rates are on the mend as the country adjusts to new policies.
Although he held a 55% approval rating in August 2024, Milei’s favorability has hovered around 43% in recent polling amid possible connections to alleged corruption scandals and continued fiscal uncertainty in certain arenas during the country’s drastic reforms.
In comments regarding Sunday’s election in Buenos Aires, Milei conceded his party “suffered a setback” but vowed to press forward ahead of October’s midterm elections. His party is still expected to have a strong showing in the elections, according to polling.
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“Without any doubt, today we suffered a clear defeat,” he said in a concession speech.”If we’ve made political mistakes, we’re going to internalize them, we’re going to process them, we’re going to modify our actions.”
“But the economic course for which we were elected will not change,” Milei added. “We will continue to defend fiscal balance tooth and nail…There will be no retreat in government policy … The course will not change; it will be redoubled.”