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Market Strain Grips Argentina Ahead of Vote as Extremadura Faces a Possible Snap Election

Fragile alliances are now deciding the next steps.

Overview

  • Argentina approaches the October 26 legislative elections with a surging dollar, interest rates near 190% and volatile bonds despite exceptional U.S. support, according to market analyses.
  • A new survey finds 53% of households say they do not make ends meet and nearly 58% took on debt, underscoring the social stress shaping voter sentiment.
  • The government is preparing labor, tax and pension overhauls for the next Congress and plans to build votes through agreements with the PRO, parts of the UCR and allied governors.
  • At the IDEA business forum, pro-government governors backed fiscal consolidation but pressed for wider provincial pacts and steadier rules to reduce uncertainty after the vote.
  • In Spain’s Extremadura, the PP-led Junta filed a €8.657 billion 2026 budget without opposition support, widening its rift with Vox and raising the likelihood of an early regional election.