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President of Argentina xavier mileyThe party has won a decisive victory in the country’s midterm legislative elections, securing a mandate to continue its radical economic reforms despite public discontent over severe austerity measures.
The result provides a significant boost to Mr Miley, whose approval ratings had recently fallen.
Analysts believe the stronger-than-expected performance reflects public fear of renewed economic turmoil if the country abandons Miley’s hardline policies.
Although these measures have drastically cut the subsidies that many Argentines rely on, they have also succeeded in slowing inflation substantially.
The results are also likely to be pleasant donald trump, Whose administration had previously faced criticism after the substantial financial aid it provided to Argentina.
Addressing a crowd of supporters Buenos AiresA victorious Mr Miley said: “Argentina showed they do not want to return to the model of failure.”
Argentina’s public is wary of past economic crises
Gustavo Cordoba, director of the Argentinian Zuba Cordoba polling firm, said he was surprised by Miley’s performance and thought it reflected concerns about a possible repeat of the economic crises of previous governments.
“Many people were willing to give the government another chance,” he said. “We will see how much time Argentine society gives to the Argentine government. But the victory is undeniable, undeniable.”
Córdoba said Miley’s government appeared to have secured the one-third of seats needed in the Chamber of Deputies to prevent any future presidential veto from being overturned by Congress. Over the past few months, the opposition had overturned several of Miley’s vetoes of spending bills they said threatened the country’s fiscal balance.
“The outcome is better than even the most optimistic Miley supporters expected,” said Marcelo Garcia, director of risk consultancy Horizon Engage in the US.
“With this result, Miley will be able to easily defend his orders and vetoes in Congress,” Garcia said. He said allies would have more incentive to support a winning president.
Indeed, in her celebration speech, Miley suggested a deep desire to build partnerships, saying, “There are dozens of representatives and senators from other parties with whom we can reach basic agreements.”
Foreign investors have been impressed by the government’s ability to reduce monthly inflation from 12.8 percent before Miley’s inauguration to 2.1 percent last month, while achieving fiscal surpluses and implementing sweeping deregulation measures.
To support Miley, the Trump administration offered a potentially $40 billion bailout, including an already signed $20 billion currency swap and a proposed $20 billion debt investment facility.
The White House did not immediately respond to a request for comment on Sunday’s election results.
Miley wins big in Buenos Aires and nationally
According to official results, the president’s party La Libertad Avanza received 41.5 percent of the vote in Buenos Aires province, while the Peronist coalition received 40.8 percent. The province has long been a political stronghold for Peronists, marking a dramatic political shift, and Buenos Aires congressional elections in September marked a major comeback for Miley.
Nationwide, La Libertad Avanza gained 64 seats in the House of Deputies, up from 37, according to government figures.
Half of the seats in Argentina’s lower Chamber of Deputies, or 127 seats, as well as one-third of the Senate, or 24 seats, were up for election in the midterm vote. The Peronist opposition movement had the largest minority in both houses, overwhelming Miley’s relatively new party.
Political experts had said that securing more than 35 percent of the votes would be a positive result for Miley’s government.
María Laura Tagina, a political scientist at the Universidad Nacional de San Martín, said that although Miley’s approval ratings were affected by fatigue with austerity measures and corruption scandals, it was possible that disillusioned Argentines decided to stay home.
Media outlets reported that voter turnout was about 68 percent, the lowest in more than a decade.
Miley has said he expects a cabinet change after the election that could include members of the centrist PRO party, a frequent ally of the government in Congress led by former President Mauricio Macri.
Bonds and stocks are expected to rise when markets open on Monday, as the result will give Miley the votes and political capital needed to accelerate his reforms.
Many analysts also predict that there will be a devaluation of the peso, which they say is overvalued to control inflation.