(Buenos Aires) Argentine President Javier Milei scored significant victories in key constituencies in Sunday's midterm elections, securing a crucial confidence vote. This result strengthens his position to implement his radical free-market agenda, especially since he has billions of dollars of support from the Trump administration.

Mr. Milei's ruling Freedom Advances (LLA) party exceeded expectations by winning more than 40 percent of the vote in the national election, which renewed nearly half of the lower house of Congress. According to local media tallies, based on official figures with more than 97 percent of the votes counted, LLA also captured six of the eight provinces that voted for a third of the Senate.

These electoral performances were well above analysts' expectations. The left-wing populist opposition movement, Peronism, received just over 31% of the vote, which analysts called the worst result for the alliance in years.

Mr. Milei announced that his party had increased its representation in the lower house from 37 to 101 seats, and in the Senate by 14 additional seats, bringing its total to 20 senators. This strong showing gives him sufficient support in Congress to maintain his presidential vetoes, guard against any impeachment attempt, and advance his ambitious tax and labor reform plans in the coming months.

Celebration and end of an era

At the party's headquarters in Buenos Aires, a triumphant Milei appeared on stage, belting out lyrics from "I am the king of a lost world!", the metal song that has become his anthem.

Cheered by his supporters, the president interpreted this victory as proof that Argentina is turning its back on decades of Peronism, responsible for the country's reputation being tarnished by repeated defaults on its sovereign debt.

"The Argentine people have left decadence behind and opted for progress," Milei said, thanking "all those who supported the ideas of freedom to restore Argentina to greatness."

The election has generated unprecedented interest in Washington and on Wall Street, particularly after US President Donald Trump suggested that a defeat for his ally could jeopardize a $20 billion aid package for struggling Argentina.

Despite the international stakes and compulsory voting, enthusiasm did not translate into a high turnout in Argentina: the rate stood at just under 68%, one of the lowest since the return to democracy in 1983.

Persistent economic and political challenges

A key ideological ally of Donald Trump, Mr. Milei had much to gain from these elections to consolidate his policies of public spending cuts and economic liberalization, after decades of deficits and protectionism.

Political analyst Sergio Berensztein confirmed that "the elections were much better for the government than the polls predicted."

However, he warned: "This is a boost that should be taken with caution, as the situation remains difficult, both economically and politically."

The government must avert a looming currency crisis since a major defeat for the Peronist opposition in provincial elections last month triggered market panic and a plummeting peso, requiring extraordinary intervention from the U.S. Treasury.

Moreover, scandals, including corruption allegations targeting the president's powerful sister, Karina Milei, have tarnished the president's image as a fierce anti-corruption crusader, upsetting voters already angered by his austerity measures.

Although budget cuts have helped bring inflation down from an annual peak of 289% in April 2024 to 32% last month, many Argentines are struggling to make ends meet. Price increases have outpaced wage and pension increases since cost-of-living increases were reduced. Households are paying more for electricity and public transportation following the removal of subsidies, and the unemployment rate has risen since the president took office.