Argentina will hold legislative elections on Sunday that are being seen as a litmus test for President Javier Meili’s free-market reforms and deep austerity measures.
The president and his party, La Libertad Avanza, are seeking to increase their small minority in Congress, which would make future reforms easier. Melei has faced several political setbacks since September, as Congress has overturned laws he introduced.
The high-risk midterm elections are of even greater importance for Argentina’s economic security. US President Donald Trump, who recently provided massive financial aid to Argentina, has threatened to withdraw support if Miley does not perform well in the election.
“Don’t give up because we’re at the halfway point,” Miley told supporters at a concluding campaign event in the port city of Rosario on Thursday. “We’re on a good track.”
Miley’s moment of truth
Miley – who has built his presidency on austerity measures and drastic economic reforms – saw his popularity decline amid a corruption scandal and public fatigue. While his reforms have tamed inflation, dramatic welfare cuts have severely hit universities, public hospitals and pensioners.
His party was consequently defeated in Buenos Aires provincial elections in September, a result seen as indicative of the mood in Sunday’s voting.
In these legislative elections, half of the members of Argentina’s lower houses and one-third of the seats in the Senate are up for grabs.
The majority seems out of Miley’s reach. However, political experts say that if the President’s party secures more than 35% of the vote, his government will be able to circumvent his veto through coalitions with other parties.
American bailout on the line
The White House will keep a close eye on Sunday’s results.
Faced with the pressure of the peso, which is continuously losing its prestige and inflation which is rising back, Miley asked for help from one of her best political friends: US President Donald Trump.
Trump, who has called Miley his “favorite president”, offered a financial package in the form of a $20 billion currency swap and a $20 trillion bailout of private banks.
But soon after, Trump set a condition that Miley would not suffer defeat at the hands of “socialists or communists.”
Edited by: Jennifer Cimino Gonzalez