Argentina Heads to Polls as Economic Crisis and Trump’s ‘Interference’ Loom

Argentine President Javier Milei faces a crucial juncture in his leadership as citizens get ready to vote in Sunday’s midterm elections, marking the halfway point of his administration. This election occurs against a backdrop of increasing economic challenges and political uncertainty. Critics have voiced concerns about Milei’s strongest foreign ally, Trump, alleging interference in Argentina’s domestic matters.

Milei, who took office in December 2023 with a radical libertarian agenda, has pledged to inaugurate a “new era of peace and prosperity” through extensive austerity measures and tackling inflation. His administration has made strides in reducing triple-digit inflation; however, Milei’s tenure has been beset by a series of challenges in recent months.

Recent controversies surrounding close associates, such as his sister and chief-of-staff Karina Milei, along with an associate allegedly connected to drug trafficking, have intensified scrutiny. Additionally, the Argentine peso’s steep decline and escalating public discontent over austerity measures have further eroded his political standing.

The midterm election has taken on an international dimension with Trump, Milei’s most prominent overseas supporter, openly backing the Argentine leader and cautioning of repercussions should his performance not meet expectations. “Argentina is fighting for its life… They are dying,” Trump stated last week during Milei’s visit to the White House. Additionally, he warned that a $40 billion US bailout package could be retracted if Milei’s coalition does not succeed, saying, “If he doesn’t win, we’re gone.”

The remarks have elicited strong backlash from opposition leaders in Argentina, who have accused Trump of going beyond his bounds. Itai Hagman, a Peronist economist seeking re-election in Buenos Aires, labeled Trump’s statement as “a clear interference in the internal affairs of another country,” and charged him with attempting to “extort” Argentine voters.

La Libertad Avanza, the party led by Milei, recently faced a significant setback, having lost the Buenos Aires provincial election, an area that accounts for 40% of the nation’s population. In an incident reflecting mounting discontent with economic strategies, the president was targeted with stones during a public event in August.

The public outcry is primarily driven by Milei’s austerity policies, which have significantly impacted workers and the middle class. Detractors label his changes as a “libertarian anarcho-capitalist experiment” resulting in “severe economic and social distress.” Hagman contended that Milei’s administration had essentially “outsourced economic management to foreign officials.”

Government allies continue to advocate for patience. “We cannot solve all the problems that the country has faced over the past century in just two years,” stated Gonzalo Roca, a congressional candidate in Córdoba. He emphasized that the nation is “on the right path,” while also recognizing the necessity for “effort and sacrifice.”

Political analyst Gustavo Córdoba suggests that Milei could face repercussions from the electorate due to his inability to enhance living standards effectively. Recent polls point out that 60% of Argentinians are struggling to make ends meet.

Benjamin Gedan, who leads the Latin America program at the Stimson Center, emphasized that Milei had vowed a phase of “shared prosperity” in return for facing economic hardships. “That has yet to come to fruition,” he remarked.