Argentina’s Javier Milei faces his toughest test yet amid political turmoil

Argentine President Javier Milei faces a defining moment as political losses, economic strain, and scandals threaten his reform agenda. Following a regional election defeat and a sharp peso sell-off, the U.S. Treasury intervened, selling dollars and securing a $20 billion swap line to prevent a full-blown financial collapse.

Source Financial Times

Despite early success in curbing inflation and cutting public spending, Milei’s government is now struggling. Inflation has begun to rise again, growth has stalled, and the peso continues to slide. His approval rating has fallen to about 40%, while his party controls less than 15% of Congress, leaving him politically isolated.

Corruption controversies — including allegations involving his sister and chief of staff — and public frustration with economic pain have further eroded confidence. Analysts warn that Argentina risks slipping back into recession, making the upcoming October 26 elections a crucial test for Milei’s presidency and the survival of his free-market experiment.