Argentinian President Javier Milei’s party has pulled off a stunning win in legislative elections, boosting his ability to push forward with his overhaul of the economy, including free market reforms and deep austerity measures.

In the elections, widely seen as a referendum on Milei’s performance in office, his La Libertad Avanza party won more than 40 percent ​​of the vote in Sunday’s elections, compared with 31 percent for the left-leaning Peronist opposition movement.

The midterm elections were the first national test of Milei’s support since he won office two years ago and will help him maintain the support of United States President Donald Trump, whose administration recently provided Argentina with a hefty financial bailout but has threatened to pull away if the libertarian leader did not do well.

At La Libertad Avanza’s headquarters on Sunday, Milei hailed the party’s victory as a “turning point” for the country and promised to charge ahead with his reforms.

Beaming as his supporters cheered, he seized on the results as evidence that Argentina had turned the page on decades of Peronism, which he said had brought the country infamy for repeatedly defaulting on its sovereign debt.

“The Argentinian people left decadence behind and opted for progress,” Milei said, thanking “all those who supported the ideas of freedom to make Argentina great again”.

Half of the seats in the lower Chamber of Deputies, or 127 seats, and one-third of the upper Senate, or 24 seats, were up for grabs.

Milei said his party has now tripled its seat count, winning 101 seats in the lower house, up from 37, and 20 seats in the Senate, up from six.

The most surprising results were in Buenos Aires province, where Milei’s party clawed its way back from defeat in last month’s local elections to run neck-and-neck with the Peronists.

The province has long been a political stronghold for the Peronists, and the win for Milei’s party marked a dramatic political shift.

The strong showing ensures Milei will have enough support in Congress to uphold presidential vetoes, prevent an impeachment effort and see through his ambitious plans for tax and labour reforms in the coming months.

To support Milei, the Trump administration offered a bailout potentially worth $40bn, including a $20bn currency swap, which is already signed, and a proposed $20bn debt investment facility.

Trump had threatened to pull the support if his populist ally performed poorly, warning: “If he doesn’t win, we’re not going to waste our time because you have somebody whose philosophy has no chance of making Argentina great again.”

Al Jazeera’s Teresa Bo, reporting from Buenos Aires, said Trump’s interest in Milei may have influenced the decisions of some of the voters.

“Certainly, the United States played a crucial role in the last stage leading to this election,” she said. “People here listened, and in a way, it may have convinced many to vote for Javier Milei’s party.”

The results were a surprise, she said, “after the president’s party lost by 14 points in the province of Buenos Aires last month to the Peronist opposition after one of the harshest austerity plans in this country’s history”.

Analysts said the stronger-than-expected showing could reflect fear of renewed economic turmoil if the country abandoned Milei’s policies, which, while painful at times, have succeeded in drastically slowing inflation.

Gustavo Cordoba, the director of the Zuban Cordoba polling firm, told the Reuters news agency that he was shocked by the results and thought they reflected public wariness over a possible return to the economic crises of past governments.

“Many people were willing to give the government another chance,” he said. “We’ll see how much time Argentine society gives the Argentine government. But the triumph is unobjectionable, unquestionable.”

Milei, an ideological ally of Trump who has slashed state spending and liberalised Argentina’s economy after decades of budget deficits and protectionism, had a lot riding on Sunday’s elections.

Milei’s government has been scrambling to avert a currency crisis ever since the defeat by the Peronist opposition last month panicked markets and prompted a selloff in the peso – a move that led to the US Treasury’s extraordinary intervention.

A series of scandals – including bribery allegations against Milei’s powerful sister, Karina Milei – hurt the president’s image as an anti-corruption crusader and hit a nerve among voters reeling from his harsh austerity measures.

Although the budget cuts have significantly driven down inflation from an annual high of 289 percent in April 2024 to 32 percent last month, many Argentinians are still struggling to make ends meet.

Price rises have outpaced salaries and pensions since Milei cut cost-of-living increases. Households pay more for electricity and public transport since Milei cut subsidies. The unemployment rate is now higher than when the libertarian president took office.

[Aljazeera]