Argentine President Javier Milei has secured a victory in Argentina’s midterm legislative elections, with voters handing his party a renewed mandate to press ahead with sweeping economic reforms, despite widespread hardship caused by his austerity measures.

The result comes as a lifeline for Mr Milei, whose approval ratings had slumped in recent weeks amid public anger over subsidy cuts and spending reductions. His win, however, signals that a large share of Argentines are willing to endure short-term pain in exchange for a possible long-term economic stability.

Speaking to jubilant supporters in Buenos Aires, Mr Milei declared that the vote was proof that “Argentines do not want to return to the model of failure”. His words drew loud applause from a crowd gathered in a city still reeling from months of soaring prices and job losses.

Political analysts say the outcome underscores a mixture of hope and anxiety among the electorate, with hope that Mr Milei’s radical reforms might finally tame Argentina’s economic volatility and anxiety about relapsing into the mismanagement of past governments.

“Many people were willing to give the government another chance,” said Gustavo Córdoba, director of polling firm Zuban Córdoba. “We’ll see how long that patience lasts. But the triumph is unquestionable.”

According to official results, Mr Milei’s party, La Libertad Avanza (Freedom Advances), won 41.5% of the vote in Buenos Aires province, an area long considered a Peronist stronghold, compared with 40.8% for the Peronist coalition. Nationwide, the party expanded its presence in the Chamber of Deputies, gaining 64 seats, up from 37.

This gives Mr Milei’s administration enough seats, roughly a third of the chamber, to block any attempt to overturn his presidential vetoes. For the president, that means fewer political obstacles to pushing his free-market agenda through Congress.

“With this result, Milei will be able to easily defend his decrees and vetoes in Congress,” said Marcelo García, Americas Director at risk consultancy Horizon Engage. “It gives him breathing room, and it gives his allies more incentive to stay close.”

Under Mr Milei’s leadership, Argentina has seen monthly inflation drop sharply from 12.8% before his inauguration to 2.1% last month, alongside the first fiscal surplus in years. His government has slashed subsidies, loosened regulations, and sought to rebuild investor confidence.

These efforts have come at a cost. Prices of basic goods have surged, unemployment has climbed, and poverty rates have worsened. Yet many voters appear to have calculated that a return to the Peronist model would be even worse.

The election outcome is also likely to be welcomed in Washington. The Donald Trump administration, which has backed Milei’s pro-market stance, had previously facilitated a $40 billion bailout package to stabilise Argentina’s finances.

Mr Milei has hinted at a post-election cabinet reshuffle that could bring in figures from the centrist PRO party, led by former president Mauricio Macri, signalling a more pragmatic tone after months of political turbulence.

Mr Milei’s win cements his position as Argentina’s dominant political force. Markets are expected to react positively when trading opens on Monday, with analysts predicting gains in bonds and stocks as investors bet on deeper structural reforms.

However, economists warn that a devaluation of the Argentine peso may be on the horizon, which could reignite inflationary pressures.