Argentina’s President Javier Milei secured US economic aid by winning the October parliamentary elections, fulfilling the United States’ explicit condition for support.
The Historic Rise of Milei
Argentina’s politics had long been dominated by Peronist and Radical forces, until Javier Milei emerged as a fresh, economically‑focused challenger. He founded the libertarian party La Libertad Avanza and won a seat in the Buenos Aires Chamber of Deputies in 2021.
In the 2023 presidential election Milei ran on a platform of “a new Argentina” and a decisive break from the old parties. He capitalized on public fatigue with traditional leaders, winning the vote in a country that had rarely seen such a turnover.
Confronting Argentina’s Fiscal Crisis
Milei’s first priority was to eliminate the country’s budget deficit. Within months the deficit fell from more than 3% of GDP to zero, a move he described with the image of a chainsaw cutting subsidies and bloated spending.
He also sharply reduced inflation, bringing it from 25% monthly in late 2023 to just 1.9% in August 2025, while stabilising the peso after an initial devaluation.
Legislative Struggle in a Minority Government
With only 101 deputies and 20 senators out of 257 and 72 seats, Milei governs a minority legislature. He failed to push through the Ley de Bases reform package and instead used his veto power to force compromises with a tightly divided Congress.
According to scholars, Milei has adopted both aggressive rhetoric and pragmatic “realpolitik” tactics, negotiating temporary compromises to keep his agenda alive.
US Assistance Conditions and Support
US Treasury Secretary Scott Bessent announced a $40 billion aid package, including a bond‑market intervention and currency‑stabilisation support, contingent on Milei’s victory in the October parliamentary elections.
The move surprised Argentine observers, as the country generally resists external influence. Bessent emphasised that the aid was meant to prevent another collapse in the region.
China’s Growing Influence in Argentina
China has become Argentina’s second‑largest trade partner, financing key projects from shale gas to lithium mining. US policy now seeks to curb these ties, arguing that large Chinese infrastructure ventures may have strategic military uses.
President Milei, meanwhile, has pursued a trade accord with the United States and affirmed that Argentina should pursue diversified alliances beyond China.
The Road Ahead for Milei
Facing rising debt and low foreign‑exchange reserves, Milei plans large‑scale reforms covering the budget, labour, and tax systems. He has committed to a “most reformist” Congress, though partisan opposition remains strong.
Analysts note that Milei’s popularity is high, but future economic setbacks or political crises could jeopardise his position ahead of the next election cycle, likely in 2027.
