Argentine President Javier Milei achieved a commanding triumph in Sunday’s midterm elections, strengthening his hold on Congress. This win injects new energy into his administration’s agenda to implement significant spending reductions and embrace extensive free-market policies.

This electoral outcome enhances Milei’s libertarian movement, signaling a dramatic shift for one of Latin America’s largest and most unpredictable economies.

In Buenos Aires province, Milei’s party, La Libertad Avanza, captured around 41.5% of the vote, marking a historic upset in a region traditionally controlled by the Peronist opposition. The opposition coalition garnered 40.8%, according to reports from Reuters and The Associated Press.

Argentina’s President Javier Milei gestures while delivering a speech on stage. (AP Photo/Manu Fernandez, File)

On a national level, La Libertad Avanza expanded its representation in the lower house from 37 to 64 seats. This increase positions Milei to more effectively uphold his vetoes and executive orders, which are central to his economic strategy.

“The result is better than even the most optimistic Milei supporters were hoping for,” Marcelo Garcia, Americas director at the risk-analysis firm Horizon Engage, said in comments reported by Reuters. “With this result, Milei will be able to easily defend his decrees and vetoes in Congress.”

Political consultant Gustavo Cordoba told Reuters the outcome reflected a cautious optimism among voters who appear willing to give Milei’s economic policies more time.

Argentina President Javier Milei speaks during a ceremony to commemorate Holocaust and Heroism Day, in Buenos Aires, Argentina, Wednesday, May 8, 2024.  (AP Photo/Natacha Pisarenko)

“Many people were willing to give the government another chance,” Cordoba said. “The triumph is unobjectionable, unquestionable.”

Reuters reported that inflation has fallen from 12.8% before Milei’s inauguration to 2.1% last month. His government has also posted a fiscal surplus and pushed through broad deregulation measures — a dramatic reversal after years of economic turbulence.

According to The Associated Press, the U.S. government under President Donald Trump offered Argentina a $40 billion aid package, including a $20 billion currency swap and a proposed $20 billion debt-investment facility, after tying future U.S. support to Milei’s performance in the midterms.

Italian Prime Minister Giorgia Meloni and Argentina’s President Javier Milei share a joke as they arrive for the Presidential Inauguration of Donald Trump at the Rotunda of the U.S. Capitol in Washington, D.C., on Jan. 20, 2025.  (Evelyn Hockstein/Reuters)

Investors reacted positively to the results. Reuters reported that Argentine bonds and stocks are expected to rally as Milei’s stronger hand in Congress gives him the political capital to accelerate his reforms

Milei called the election “a turning point for Argentina,” according to AFP via the Times of Israel.