Berliner Boersenzeitung - Milei reforms on the line in pivotal Argentine midterms

The legislative elections are the first national test of support for Milei since he won office two years ago on a promise to revive the long-ailing Argentine economy by dint of painful reforms.

Half of the seats in the Chamber of Deputies and one-third of the Senate are up for grabs.

Milei's small La Libertad Avanza (LLA) party is hoping to significantly increase its seat tally in both chambers but is not expected to secure a majority.

Polls closed at 6:00 pm (2100 GMT) after ten hours of voting, with low turnout seen as a sign of disillusionment both with Milei and the opposition.

Preliminary results are expected Sunday evening.

The election run-up was marked by a run on the national currency, the peso, that forced Milei to seek a bailout from US President Donald Trump, a close ally.

Washington has promised an unprecedented $40 billion package of aid, but the assistance came with a warning from Trump to Argentines that he would not "be generous" if the outcome Sunday is unfavorable for Milei.

Argentines fear the government could depreciate or devalue the peso, widely seen as too strong, after the vote.

Questioned about the possibility on Sunday after he cast his ballot, Economy Minister Luis Caputo replied: "No."

"Monday is just another day, nothing changes to the economic program or the band system," he said, referring to the peso-dollar exchange rate band set by the government in April.

- 'Nothing for workers'

Clad in his trademark leather jacket, Milei voted in Buenos Aires on Sunday morning, greeting waiting supporters but refusing media questions.

Adriana Cotoneo, a 69-year-old pensioner also voting in Buenos Aires, told AFP she backed his party "not because I believe it's the best option, but because I'm clear about who I want to be gone" -- a reference to the center-left Peronist party that governed Argentina for most of its post-war history but has been dogged by allegations of corruption.

Economist and former TV pundit Milei, 55, electrified the 2023 race by revving a chainsaw at rallies to signify his plans to slash a bloated state and one of the world's highest inflation rates.

He cut tens of thousands of public sector jobs, froze public works, cut spending on health, education and pensions and led a major deregulation drive, prompting repeated mass protests.

His reforms were blamed for initially plunging millions of Argentines deeper into poverty. But they did slow inflation by two-thirds, to the relief of many, although at a cost of faltering economic growth, consumption and manufacturing.

"The economic plan is not working for the people, for businesses, for industry," centrist opposition senator Martin Lousteau said as he voted in the capital.

"We need a better Congress, less polarized, with less shouting, insults, and more capacity for dialogue," he said.

- US generosity limited -

Investors began dumping the peso last month after Milei's party suffered a blistering rejection in bellwether Buenos Aires provincial elections.

Trump stepped in to shore up his closest Latin American ally, calling him a "great leader" and hosting him for talks at the White House.

Milei's LLA party and its allies could still however struggle to garner the third of seats they need in each chamber to advance the president's reform agenda in the face of an increasingly combative opposition.

The self-declared "anarcho-capitalist" leader has already seen many of his signature policies blocked by Congress, notably his efforts to privatize major state-owned companies and his veto of increased spending on public universities, emergency pediatric care and people with disabilities.

Adding to his woes, members of Milei's inner circle have been implicated in a variety of scandals.

(G.Gruner--BBZ)