Trump's bailout threat may have been key to Milei's electoral triumph in Argentina

"The US president had vowed to jettison his South American ally if, as widely predicted, the radical libertarian fared badly in Sunday's make-or-break legislative vote. If he doesn't win, we're gone, Trump declared when Argentina's shaggy-haired president visited him in Washington earlier this month to plead for economic help. Milei's political woes have been building in recent months, with growing public frustration over Argentina's sluggish economy translating into market jitters and a pasting in Buenos Aires' provincial election in September."

"Trump stepped in after that humiliating result, offering a $20bn (15bn) currency swap deal and a further $20bn in support for an economy he claimed was dying although the US president indicated such generosity would evaporate if Milei failed to win big on Sunday. Milei's opponents accused Trump of flagrantly meddling in Argentina's electoral process with his explicit message to voters. Some predicted an anti-Trump backlash, similar to the one felt in neighbouring Brazil as a result of Washington's ham-fisted attempt to force its authorities"

"If anything, some suspected the gambit might have paid off by swaying voters' minds. Diego Guelar, an Argentinian politician and former ambassador to China and the US, voiced unease at how Trump had warned voters they had to vote for his friend [Milei] or he would abandon them. But Guelar thought the US president's direct intervention, while awful, had worked, with voters accepting the need for American assistance and blaming the economic crisis on the opposition."

Javier Milei achieved a surprise triumph in Argentina's midterm elections after receiving a $40bn backing tied to explicit US support. The US president threatened to withdraw help if Milei failed, following Milei's recent poor provincial result and mounting public frustration over a sluggish economy. Trump offered a $20bn currency swap and an additional $20bn in support, prompting accusations of electoral meddling and warnings of an anti-Trump backlash. Voter response showed little visible reprisal; some analysts and politicians suggested the US intervention may have persuaded voters to accept American assistance and blame the opposition for the crisis.

Read at www.theguardian.com