Milei Pushes Neoliberal Agenda After Midterm Wins, Deepening Inequality in Argentina

Argentina's President Javier Milei's La Libertad Avanza party secured victories in key districts during Sunday's midterm elections, giving the green light for a new wave of radical neoliberal reforms. The party garnered over 40% of the vote, overtaking the left-leaning Peronist opposition, which received 31%, in an election marked by widespread disillusionment and low turnout.

Milei boasted that his party and allied blocs gained 14 seats in the Senate and 64 in the lower house, consolidating legislative power to uphold presidential vetoes and block any attempts at accountability, including impeachment. Addressing supporters in Buenos Aires, Milei declared, "The Argentine people have decided to leave behind 100 years of decadence. Today we have passed the turning point. Today we begin the construction of a great Argentina." Yet, for millions, this 'turning point' signals deeper austerity and suffering.

The election attracted significant international attention, especially from the United States, whose interests are closely tied to Argentina's economic direction. Former President Donald Trump had openly stated that a $20 billion currency swap deal and an additional $20 billion loan were conditional on Milei's victory, making it clear that foreign capital would dictate Argentina's future. "If he wins we're staying with him, and if he doesn't win, we're gone," Trump remarked earlier this month. After the election, Trump praised Milei's performance, stating, "Our confidence in him was justified by the People of Argentina."

Milei's party even made inroads in traditional Peronist strongholds, including Buenos Aires province, where they eked out a narrow victory. This shift highlights the fragmentation and weakening of the Peronist movement, long a bulwark for workers' rights and social justice, now undermined by internal divisions and relentless neoliberal propaganda.

Despite the electoral gains, Milei still lacks a majority in either legislative house, posing obstacles to his full agenda of deregulation and privatization. Political consultant Sergio Berensztein observed, "This victory is necessary, but not sufficient to maintain control of Congress. The government must build a broad and effective coalition with like-minded forces," raising concerns about further right-wing alliances.

Milei's draconian austerity measures have led to a reduction in inflation, from an annual high of 289% in April 2024 to 32% last month, but at a devastating social cost. Over 50% of the population now lives in poverty, as public services are slashed and the social fabric unravels. While sectors like agriculture profit from deregulation, millions face deepening hardship. Epifanía Contreras, a 64-year-old pensioner, shared her plight: "You can't live on 290,000 pesos a month with today's inflation. The situation is getting worse and worse."

Voter turnout was just under 68%, among the lowest since Argentina's return to democracy in 1983, reflecting widespread resignation and despair as the country is pushed further down the path of inequality and social division.