Argentina's President Milei faces a political reckoning in midterm elections

"But now, with a currency crisis deepening and a controversial U.S. bailout on the way, the eccentric economist-turned-politician has more than political posturing riding on Sunday's vote. The elections which will renew half the lower house and a third of the Senate are a crucial test for a president who has made good on his promise to take a chainsaw to public spending."

"In a recent televised interview, Milei called the elections "much more important than we think," warning that without a stronger presence in Congress, it's difficult to pass legislation. His party, La Libertad Avanza, holds just 37 of 254 seats in the lower chamber, relying on tenuous alliances with conservative blocs. But Congress has increasingly rejected his agenda, underscoring his eroding grip on power. Milei's political fortunes have nosedived in recent months."

"A series of corruption scandals including allegations that his sister and closest confidant, Karina Milei, accepted bribes in a government medicine purchase have tarnished his anti-establishment brand. The Milei siblings deny the accusations, but the damage was done: Protesters have pelted the president with rocks, and his movement lost ground in key legislative races, especially in Buenos Aires province, home to nearly 40% of Argentines. The fallout was swift. The peso plunged, forcing the Central Bank to burn through reserves to stem the slide."

"Argentina still faces multibillion-dollar payments to the International Monetary Fund in 2026. In response, Washington stepped in with an unprecedented $20-billion currency swap. The Trump administration says it will seek another $20 billion from private banks and sovereign wealth funds to stabilize the peso a move that's drawn criticism from Americans struggling under domestic spending cuts. President Trump initially hinted the deal was co"

Javier Milei's political standing has weakened amid corruption allegations involving his sister and close confidant, protests, and losses in key legislative races, notably Buenos Aires province. His party holds only 37 of 254 lower-house seats and relies on fragile alliances while Congress increasingly rejects his agenda. The peso plunged, forcing the Central Bank to use reserves, and Argentina faces large IMF payments in 2026. Washington arranged an unprecedented $20-billion currency swap and the Trump administration plans to seek another $20 billion from private banks and sovereign wealth funds to stabilize the peso, drawing criticism domestically.

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