- Argentina heads toward midterm elections on October 26, and the vote is being viewed as a referendum on President Javier Milei’s bold economic reforms.
- Argentine Economy Minister Luis Caputo is in the U.S. seeking additional financial aid, while the Argentine peso has weakened slightly and bond prices have risen amid high inflation.
- U.S. Treasury adviser Scott Bessent expressed support for Milei, stating the U.S. is prepared to help and praising Milei for doing a “fantastic job.
- Despite early gains from Milei’s austerity measures, by mid-2025, unemployment rose, inflation surged again, and public enthusiasm waned, making the upcoming elections a crucial test.
As Argentina heads toward its midterm elections on October 26, the vote is being viewed as a referendum on President Javier Milei’s bold economic reforms. Elected in December 2023, Milei came to power promising to rebuild a nation battered by decades of mismanagement, inflation, and debt. Now, his reform agenda faces its first major test at the ballot box.
In recent weeks, the Argentine peso has weakened slightly, while bond prices have risen amid persistent high inflation. Reports suggest that the country’s economy minister, Luis Caputo, is currently in the United States seeking additional financial aid ahead of the elections. However, no concrete progress or official announcements have been made yet.
Commenting on the situation, U.S. Treasury adviser Scott Bessent stated, “The U.S. Treasury is fully prepared to do what is necessary, and we will continue to watch developments closely.” Bessent added that, after years of limited strategic engagement in the Western Hemisphere, the United States now has an opportunity to support Argentina’s recovery. He praised Milei for doing a “fantastic job,” expressing confidence that the right-wing leader would perform well in the upcoming elections.
President Milei, known for his pro-Trump and pro-market stance, launched sweeping austerity measures aimed at resolving Argentina’s chronic debt and solvency problems. When he took office, he warned citizens that recovery would not come without pain. “This is the last bitter pill we have to swallow before starting to rebuild Argentina,” he declared in his inaugural address.
Initially, his reforms appeared to yield results; poverty rates began to fall slightly, and inflation slowed. However, by mid-2025, these early gains started to reverse. Unemployment rose, inflation surged again, and many Argentines found it increasingly difficult to make ends meet. Public enthusiasm for Milei’s program has since waned.
“It’s true the situation is tough. I never said it would be easy,” he said. “I’m asking Argentines to make an effort and not give up, because we’re halfway there.” In a recent television interview, Milei once again urged the nation to remain patient.
U.S. Eyes Argentina’s Recovery Amid Election Uncertainty
Despite Milei’s appeal, risks remain elevated, both politically and economically. The IMF, to which Argentina owes billions, continues to demand deeper structural reforms, adding to the government’s pressure. Meanwhile, U.S. investment and potential aid have bolstered investor confidence and could help stabilise Argentina’s currency, offering a lifeline ahead of the election.
Experts, however, caution that this new phase of international support may be Argentina’s “last chance” to set its economy on a sustainable path. Failure to deliver results could once again erode investor confidence and push the country deeper into uncertainty. While potential U.S support could provide temporary relief, the elections will be a key indicator of whether Milei can secure the political mandate necessary to stabilise Argentina’s economy and implement his long-term reform agenda.
Garima Sharma is a Master’s student in International Relations at Jawaharlal Nehru University. Her interests include public policy, international governance, geopolitics, defence, and security. Views expressed are the author’s own.
Kabindra Sharma & Dr. Rippy Das 
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