Chainsaws Take Over Congress (in Argentina)

November 4th, 2025
Ian Cheng

Recent midterm elections have handed chainsaw wielder and Argentine President Javier Milei a crushing victory. His La Libertad Avanza (LLA) party won an unexpected 41% of the vote, giving the party more control over the legislative branch. The LLA now holds around 101 seats out of 257 total seats in the Chamber of Deputies, which is Argentina’s lower house. When accounting for their coalition with the Propuesta Republicana (PRO) party, the LLA will only need 22 more votes to pass laws with a simple majority in the chamber.

The coalition also holds 24 seats in the 72-seat Senate, giving them exactly a third of the seats, which is just enough power to prevent opposition parties from overriding a presidential veto. This is impactful because Milei has greatly struggled with his party’s minority. This October, opposition senators overwhelmingly overturned his vetoes of the University Funding Law and the Pediatric Emergency Declaration with votes of 7-58 and 7-59 respectively. Those defeats resulted in the restoration of educational worker salaries, inflation-adjusted budgets for universities, and renewed financial support for the Garrahan Hospital. The public hospital previously had its budget frozen as part of a sweeping 48% cut to the national healthcare budget. Most importantly, the election’s outcome means that Milei’s future policies are less likely to be stopped and more likely to become law.

The LLA even managed to win the country’s capital of Buenos Aires, which was previously a stronghold for the Peronist Fuerza Patria (FP) party. This is unprecedented when considering that FP has completely different beliefs from the LLA. For example, Peronist ideals, inspired from former president Juan Peron, are typically more left-leaning, as seen through their support of public spending and protectionist trade policies. Thus, it’s clear why FP lawmakers have staunchly opposed Milei’s “shock therapy reforms,” which include sharp cuts to public spending and opening up the Argentinian market to foreign products. Furthermore, the election weakened the FP as much as it empowered the LLA. The Peronists have held majorities or near-majorities in the Senate since 1985, and losing that is a major setback for their political standing.

Strong public support also gives President Milei more leverage to negotiate with Congress on his priorities. Previously, the LLA expressed their desire to further reform the economy through a second version of the Ley Bases bill. It includes provisions such as a government spending cap amounting to 25% of GDP and the use of collective bargaining, where labor unions are empowered to negotiate employee wages with employers. Compared to before the election, opposition parties may now be more likely to compromise on the bill's terms, making it easier for the LLA to get what it wants.

However, the LLA can’t just sit back and relax, because there are still several looming concerns. On the economic side, Milei's policies have had notable effects. From the start of his term, poverty has fallen to 32% from 50% and the annual inflation rate is currently 32%, down from a staggering 211%. Supporters argue that his aggressive cost-cutting has been effective, as reflected in the fact that inflation is no longer the number one concern for voters. On the other hand, the austerity measures, or policies aimed at reducing a budget deficit, require a lot of US dollars. Milei’s administration uses US dollars to buy pesos, which increases demand for the peso, thus raising its value. A stronger currency helps tame inflation by keeping import prices lower. This is why loans from the IMF and the recent bailout/currency swap with the United States are so helpful, because they give Argentina more dollars to support their peso. But, this dependence on the greenback is clearly expensive and unsustainable, considering the peso's volatility. If Milei’s administration fails to steady the ship for the long-term, inflation could soar, worsening the economy and tanking the LLA’s popularity.

Argentinians renewed Milei’s power in fear that Peronist rule would mark a return to economic chaos. However, the president still has to deal with corruption allegations, soften the harmful effects of cost-cutting, and balance the demands of the United States and his nation simultaneously. Tumultuous times aren’t over, and only time will tell how successful Milei will be.