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Milei’s Midterm Surge Sets Stage for Next Reform Push

Milei now needs allies to pass tax and labor changes, with U.S. support under scrutiny.

Overview

  • La Libertad Avanza won roughly 40–41% of the vote, and together with PRO will hold about 104 seats in the lower house, short of the 129 needed for a simple majority.
  • The United States provided a reported $40 billion lifeline that helped steady the peso before the vote, and President Trump warned the support would be withdrawn if Milei lost.
  • Financial markets rallied after the result, with the peso and Argentine bank stocks rising, as the outcome reduced immediate financing fears.
  • Milei is preparing a second wave of measures to simplify taxes and loosen labor rules, with pension changes later, and he has moved to engage centrist and provincial leaders, including a meeting with governors set at the Casa Rosada.
  • IMF conditions and weak reserves continue to limit room for maneuver, raising political and social risks even as the new Congress is seated on December 10.