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LOADINGERROR LOADING BUENOS AIRES, Argentina (AP) — Argentina’s libertarian President Javier Milei won decisive victories in key districts across the country in midterm elections on Sunday, clinching a crucial vote of confidence that strengthens his ability to carry out his radical free-market experiment with billions of dollars in backing from the Trump administration. Milei’s governing La Libertad Avanza party won 40.84% of the votes nationally in elections for the lower house of Congress, according to tallies in local media using numbers from electoral authorities. The results widely reported also showed his party won six of the eight provinces that voted to renew a third of the Senate. Advertisement In Sunday’s elections, Argentines voted on nearly half the seats in the Chamber of Deputies, the lower house of Congress, and for a third of those in the upper house, the Senate. THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below. BUENOS AIRES, Argentina (AP) — On the northern bank of Argentina’s Riachuelo River, luxury car dealerships report sales surging since libertarian President Javier Milei scrapped import restrictions. Streets in the Puerto Madero financial district in Buenos Aires bustle with bankers who praise Milei for ending a yearslong ban on selling dollars online. Fine restaurants serve sushi and steak to Argentine oil executives who gush about his efforts to draw foreign investment. Advertisement On the opposite side of the polluted Riachuelo waterway, Veronica Leguizamon, 34, braved heavy rain last Friday to carry home dinner for her four daughters from a soup kitchen in her neighborhood of Isla Maciel — a daily routine since Milei slashed subsidies for public services and unwound price controls on staple foods. “It’s not like we used to have so many luxuries, but before we could choose a meal,” she said. “Now we have to depend on others to know if we’ll eat or not.” The contrasting fortunes of these Buenos Aires neighborhoods just over a kilometer apart illustrate the tensions polarizing the Argentine electorate in Sunday’s nationwide congressional midterms. Advertisement As millions of Argentines voted on Sunday, their vastly different perceptions of the economy stand to determine whether Milei succeeds — and whether the Trump administration presses on with a financial rescue plan for its cash-strapped ideological ally. “Within my little circle, everyone’s happy with how things are going,” said Fernanda Díaz, 42, who runs a yacht rental company in Puerto Madero. “When I step outside it, I see people worried about making it to the end of the month.” In a reflection of widespread disillusionment, electoral authorities reported an extremely low turnout rate of just 66% after polls closed Sunday despite voting being mandatory for citizens. Advertisement Milei’s opposition spooks markets Commenting on the midterm elections, U.S. President Donald Trump threatened to rescind a $20 billion aid package for Argentina if Milei suffers a defeat at the hands of a “socialist or communist.” Trump was apparently referring to Argentina’s loosely populist movement known as Peronism that helped deliver the economic shambles that Milei inherited in late 2023. Advertisement Reckless public spending under a succession of Peronist governments — including that of former President Cristina Fernández de Kirchner, now serving house arrest for corruption — brought Argentina infamy for its inflationary spirals and sovereign debt defaults. “We needed a major change,” said Díaz, who, before launching her yacht business, lost her job as a top executive when Chilean retail group Falabella shut down its Argentine operations over high inflation, import restrictions and a wildly oscillating exchange rate under the previous Peronist government. “I voted for Milei’s government and was really enthusiastic at first.” Markets shudder at the thought of a Peronist return. When the Peronist coalition beat Milei’s libertarian party by a landslide in last month’s Buenos Aires provincial elections, investors panicked that the president’s free-market overhaul was losing support and rushed to pull capital out of the country. Advertisement In an extremely rare move, the U.S. Treasury came to the rescue — selling dollars to help meet soaring demand for greenbacks, signing a $20 billion credit line and promising another $20 billion in aid from private banks, rather than U.S. taxpayers. Assets jumped on each of the Trump administration’s announcements. Having dodged a currency crisis, Milei and his supporters were, briefly, ebullient. “I’m proud of the U.S. support. It helps us grow stronger,” said Luciano Naredo, 28, a high-end car salesperson in Puerto Madero. “I think Argentina is finally taking its rightful place in the world.” But Trump’s warning that the U.S. could pull assistance unnerved markets. Investors are hedging against more turbulence. Advertisement Fed up with the chainsaw Although Isla Maciel has long been a Peronist stronghold, 42% of the wider Avellaneda municipality voted for Milei as president in 2023, betting on the wild-haired political outsider to stabilize the economy and end triple-digit inflation. Wielding a diesel-fume-spewing chainsaw at rallies, Milei cut tens of thousands of government jobs, slashed state spending and burned through foreign exchange reserves to shore up a chronically depreciating peso. Inflation dropped — in fulfillment of Milei’s flagship campaign promise. But almost two years into his economic overhaul, purchasing power has dropped, too. With inflation still hovering at 32% annually, residents of Isla Maciel have watched the value of their wages and pensions shrivel. Advertisement “You can’t live on 290,000 pesos a month with today’s inflation,” Epifanía Contreras, 64, said as she packed her plastic bowl with rice and peas at the Foundation of Isla Maciel soup kitchen, referring to her $200 monthly pension. “The situation is getting worse and worse. It’s not fair.” Volunteers serving sopa paraguaya, a custardy cornbread, to a stream of regulars on Friday said demand has more than doubled in the past year. Those who once picked up occasional meals when tight on cash now turn up hungry. “People are coming out of real need,” said Maria Gomez, a volunteer cook. ”It’s chaos.” A third fewer residents of the Avellaneda municipality supported Milei’s libertarian party in last month’s provincial election than in 2023, expressing nostalgia for the redistributive policies of the opposition Peronist party despite its more recent reputation for financial ruin. Advertisement Axel Kicillof, governor of Buenos Aires province and the most influential elected official in the Peronist opposition, said Argentina faced a “critical election in the midst of a complex economic climate” as he cast his ballot in the city of La Plata. “Where is this resolved, or where does it begin to be resolved?” he asked of the nation’s economic troubles. “At the ballot box.” Milei has vowed in campaign speeches to press on with his harsh austerity program. But his chain saw prop, once a rally staple, hasn’t been trotted out in months. Advertisement Voting on Sunday in Buenos Aires’ middle-class Almagro district with his sister under heavy security, Milei shook hands with supporters who shouted, “Go president!” and left without making statements to the press. Argentines face familiar uncertainty Advertisement Weary Argentines are bracing for impact. 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Your initial support helped get us here and bolstered our newsroom, which kept us strong during uncertain times. Now as we continue, we need your help more than ever. We hope you will join us once again. Support HuffPost Already a member? Log in to hide these messages. “Each new government comes in, criticizes the last one, promises to do things differently and ends up being the same or worse,” said Matías Paredes, 50, a real estate broker whose foreign clientele vanished with Milei’s strong exchange rate. “This country moves in cycles.”
