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Milei Strengthens Hand in Argentina Midterms, Boosting Reform Drive

A conditional $40 billion U.S. lifeline steadied markets to give Milei new leverage.

Overview

  • La Libertad Avanza captured roughly 40–41% of the national vote versus about 31% for Peronism, outperforming pre‑election expectations.
  • The ruling bloc says it gained about 14 Senate seats and 64 in the lower house, shoring up veto power yet still falling short of an outright majority.
  • U.S. backing includes a $20 billion currency swap plus a proposed $20 billion private facility, support that President Trump explicitly tied to Milei’s showing.
  • The U.S. Treasury sold dollars to stabilize the peso during pre‑vote turbulence, and investors signaled a post‑election rally in Argentine bonds and stocks.
  • LLA narrowly flipped the Peronist stronghold of Buenos Aires province as turnout hovered near 68%, with inflation down to the low‑30% range under austerity that has brought job losses and high interest rates.