Sun Oct 26 13:53:27 UTC 2025: ## Argentina Holds Crucial Midterm Elections Testing Milei’s Economic Reforms

Buenos Aires, Argentina – Argentinians are voting in pivotal midterm legislative elections today that will determine the future of President Javier Milei’s radical economic reforms and potentially jeopardize a crucial $40 billion US bailout. Half of the seats in the Chamber of Deputies (127) and a third of the Senate (24) are up for grabs, and the outcome will reveal the level of public support for Milei’s sweeping free-market policies.

Milei’s La Libertad Avanza party, a relatively new force, holds a minority in both houses of Congress, currently less than 15%. The party is aiming to secure at least a third of the seats to defend against opposition efforts to block the president’s agenda, boosting investor confidence and securing continued support from former US President Donald Trump.

Trump has pledged a potential $40 billion bailout package, including a $20 billion currency swap and a $20 billion “facility,” but has warned he may withdraw support if Milei performs poorly. This pledge has sparked controversy in the US, particularly among farmers struggling from trade wars, who question why the US should bail out Argentina while it competes in agricultural markets.

Since taking office in December 2023, Milei has implemented drastic austerity measures, cutting public sector jobs and slashing spending on education, health, and pensions. While these policies have slowed down monthly inflation, they have also pushed millions into poverty and stifled economic growth.

Currently, the opposition Peronist movement controls both chambers of Congress, hindering Milei’s efforts to privatize state-owned enterprises. Recent scandals involving Milei’s inner circle have further weakened his position.

Analysts predict that Milei’s party will struggle to reach its target of a third of the seats, given his declining approval ratings and recent losses in provincial elections. Experts warn that without sufficient political support, even the US bailout may be insufficient to save Argentina’s struggling economy.

“If history has taught us anything about Argentina, it’s that previous bailouts, when political support wanes, have proven futile,” said Mauricio Monge, Latin America economist at Oxford Economics.

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