Argentine President Javier Milei’s libertarian party scored a resounding victory in midterm elections, preliminary results showed, consolidating his political power and strengthening his hand to advance a radical, U.S.-backed free-market overhaul.

The strong showing for Milei’s La Libertad Avanza (LLA) coalition marks a dramatic shift in Argentina's political landscape, breaking the long-standing dominance of left-wing Peronism. With over 40 percent of the national vote, LLA far outpaced the main Peronist opposition bloc, which garnered about 31 percent.

“The Argentine people have chosen to end a century of decadence and corruption,” a triumphant Milei told supporters in Buenos Aires. “Today we begin building a great Argentina.”

The results grant Milei critical leverage in Congress. His coalition is projected to gain significant seats, giving it enough power to block impeachment attempts and sustain presidential vetoes—a crucial asset for his ambitious agenda of spending cuts, deregulation, and privatization.

The election was closely watched in Washington and on Wall Street, where the outcome was seen as a referendum on Argentina's economic future. U.S. President Donald Trump, a vocal ally of Milei, had linked American financial support to the Argentine leader's political survival, according to sources.

“If he wins, we stay with him. If not, we’re gone,” Trump was quoted as saying after a recent meeting with Milei. Following the results, Trump praised Milei's "big win" while traveling in Asia, adding, "He had a lot of help from us."

This U.S. backing included a substantial currency swap and private loans, with the Argentine central bank deploying billions in reserves—bolstered by U.S. Treasury support—to stabilize the peso ahead of the vote.

The Peronist alliance, once the unrivaled force in Argentine politics, suffered one of its worst defeats in decades, plagued by internal divisions and voter anger over persistent economic crises.

Markets are expected to rally on the news, which investors see as validation of Milei's painful but aggressive austerity measures.

In a stunning reversal, Milei’s party even edged out the Peronists in the key Buenos Aires province, a traditional opposition stronghold that represents nearly 40% of the national electorate. This reversed a 14-point Peronist lead from just a month ago.

Peronist Governor Axel Kicillof responded by accusing Washington of "interfering" in Argentine sovereignty. “Neither the U.S. government nor JP Morgan are charitable societies,” he warned. “They come to take profits, not to help.”

Despite the political victory, Milei’s government faces immense challenges. While his policies have slashed inflation from a staggering 289% to 32%, many Argentines still grapple with soaring prices and rising poverty.

The win solidifies Milei's mandate but deepens the nation's political rift, pitting those who see him as a savior against those who believe his reforms have inflicted widespread hardship. (ILKHA)