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Milei’s Bloc Wins Plurality in Argentina Midterms as U.S. Lifeline Buys Time for Reform

U.S. backing steadied markets ahead of the vote, setting up a coalition hunt to advance tax and labor changes.

Overview

  • La Libertad Avanza captured roughly 40–41% of the vote, expanding its seats but remaining short of a majority in both chambers until the new Congress is seated on December 10.
  • Milei must assemble partners such as the center-right PRO to pass legislation, with Reuters noting an LLA–PRO tally of 104 lower-house seats versus 129 needed for a simple majority.
  • Washington opened a $20 billion currency-swap line and broader support was reported at up to $40 billion, with President Donald Trump saying the aid would be withdrawn if Milei lost.
  • Milei is prioritizing tax simplification and sweeping labor-law changes, including longer working hours, more flexible contracts, altered vacation rules, and installment options for severance.
  • Inflation has fallen toward 30% from above 200% after austerity and deregulation, while analysts and opponents highlight steep social costs, industry strain, and lingering credibility questions including a denied bribery allegation involving Karina Milei.