Argentina's anarcho-capitalist-oriented President Javier Milei and his party La Libertad Avanza (LLA) won a surprisingly large victory in Sunday's midterm elections and now promises to push through further reforms to shrink the state and deregulate the economy.

Milei's party received 40.7 percent of the votes for Congress, a significant increase compared to previous mandates. According to preliminary figures, LLA won 101 seats in the lower house, up from 37, and 20 seats in the Senate, up from six. Final vote tallies are expected later this week.

At the election night event in Buenos Aires, Argentina's capital, hundreds of supporters celebrated with cheers, hugs and tears.

— Today we reached a turning point. Today begins the construction of a great Argentina, said the 55-year-old Milei to his supporters. He promised continued reform work and predicted that Congress would now become "the most reform-oriented in Argentina's history".

US President Donald Trump, who has a good relationship with Milei, congratulated him and called the support "very strong".

— That was a big win in Argentina. I gave him an endorsement, a very strong endorsement, said Trump about Milei's victory.

Opposition reacts

The traditional Peronist Party, which has governed large parts of Argentina's post-war history, came in second place with 31.7 percent. Axel Kicillof, governor of Buenos Aires Province and Milei's political opponent, argued that extra efforts are needed to protect citizens.

"Milei is wrong if he celebrates this election result where six out of 10 Argentines have said that they don't agree with the model he's proposing", wrote Kicillof on X.

Voter turnout was 67.9 percent, the lowest in forty years, reflecting voters' widespread dissatisfaction with the entire political class.

Reform agenda and economic concerns

Since taking office in December 2023, Milei has implemented extensive reforms: tens of thousands of public sector jobs have been eliminated, public construction projects have been frozen, and spending on health, education and pensions has been reduced. In addition to cuts in public spending, he has pushed through comprehensive deregulation.

The reforms have initially led to increased poverty, but have simultaneously reduced inflation by two-thirds, although growth and consumption have declined.

The Argentine peso has been under pressure and the US has intervened several times to stabilize the currency market. Before the election, there was speculation about a possible currency depreciation, but Economy Minister Luis Caputo dismissed this on election day.

Many voters supported Milei despite criticism of his leadership and corruption scandals in his inner circle. Retiree Adriana Cotoneo, 69, explained:

— I voted for Milei’s party not because I believe it’s the best option, but because I’m clear about who I want to be gone.