In June, elections were held in the Buenos Aires province, marking the first major test for Argentina's President Javier Milei and his "Liberty Advances" party since coming to power. The party received 34% of the vote, while the Peronist opposition bloc secured 47.4%.
Peronists support a strong state role in the economy, strict regulation, and social justice. Their policies have often led to inflation, high spending, and a lack of investment. In contrast, Milei advocates for cutting government spending and introducing economic reforms to attract capital and stabilize the situation.
The defeat in Buenos Aires, home to nearly 40% of Argentina’s population, was a symbolic setback for Milei. His approval rating has been declining amid painful economic decisions, subsidy cuts, rising unemployment, and falling real incomes.
Particular criticism has focused on President Milei’s sister, Karina Milei, who was appointed his chief adviser. She faces corruption allegations that have undermined Milei's image as a corruption fighter. Although the government denies wrongdoing, the scandal has affected election results and investor confidence.
Following the loss, Milei pledged not to abandon his reforms but was forced to promise increases in social spending. The budget still needs congressional approval, where Milei lacks a majority. Pushing reforms will remain difficult due to strong opposition and limited public support.
Analysts predict that if Milei fails to win a parliamentary majority in the fall, his reforms may not materialize. Political uncertainty continues, with the administration's popularity now hinging on the pace of economic improvements and resolution of corruption scandals.
