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Argentine President Javier Milei speaks to the media while standing on a vehicle with lawmaker Jose Luis Espert during a La Libertad Avanza rally ahead of legislative elections on the outskirts of Buenos Aires, Argentina, on August 27, 2025.
Dual crises throw wrench in Milei’s election plans
The campaign for Argentina’s legislative election officially launched this week, but it couldn’t have gone worse for President Javier Milei. A corruption scandal – one of the very things that he railed against during his successful campaign two years ago – burst into the news after a leaked recording appeared to implicate his sister.
The tapes suggest that Karina Milei, who is also a member of the administration, was involved in a kickback scheme at the National Disability Agency (ANDIS). Nothing has been proven, but the federal authorities stepped up their investigation in response to the leaked audio.
That’s not all for Milei: alongside the corruption scandal are a host of economic issues that have undermined his policy of fiscal “shock therapy.” Output has been stagnant this year, the peso is massively overvalued – this decreases competitiveness of Argentine exports – and public sector pay is down in real terms. Argentina’s central bank also increased its reserve requirements this week, which could further hit the economy. The concern for Milei is that these issues will overwhelm the success he’s had in bringing down inflation and balancing the budget.
“It won’t be a corruption scandal that does him in, it will probably be the economic problems,” said Eugenia Mitchelstein, a social sciences professor at the University of San Andrés in Buenos Aires. “The corruption scandal doesn’t help.”
The Oct. 26 midterm election, where a third of senators and half of the Chamber of Deputies are up for election, is a vital one for the president. The vote will not only be a bellwether for how Argentina feels about his economic approach, but also gives Milei’s La Libertad Avanza (LLA) party an opportunity to pick up seats in a Congress that has blocked many of the president’s proposed reforms.
What’s the current state of Argentina’s Congress? Milei only co-founded the libertarian LLA in 2021, so its representation in both chambers of the National Congress is paltry: only six of the 72 senators and 38 of the 257 deputies currently belong to LLA. What’s more, Argentina’s politics is heavily fragmented, meaning there are several different parties represented in the Congress – no single party has a majority. The Unión por la Patria (UP), a center-left Peronist grouping that is Milei’s main foe, has a plurality.
What does Milei want? Milei’s first target is to win a third of the seats so that he can gain veto power. Beyond that, the president hopes to enact tax, labor, and pension reforms that will structurally alter Argentina’s economy. So far he has been able to muscle some changes through the National Congress, such as the big omnibus bill passed in June 2024 to deregulate the economy and hand the president more power. But his party’s threadbare representation limited what he was able to achieve, forcing him to negotiate with his opponents from a weak position. That could change after the October election.
“Even if the government does extremely well, they won’t have their own majority in Congress, so they will still need to negotiate with the more moderate sectors of the opposition,” Juan Cruz Díaz, the managing director of Buenos Aires-based advisory firm Cefeidas Group, told GZERO. “But they will do it from a different standpoint, from a different legitimacy. They will have more leverage.”
Who’s leading the charge against Milei? UP may be the biggest opposition party, but they have a leadership crisis. Over 40% of Argentinians said they didn’t know who the leader of the opposition was, or said there was none, per a Pulso poll from earlier this month. Another 25% said it was former President Cristina Fernández de Kirchner, the left-wing Peronist leader who is currently under house arrest for corruption, and is barred from politics for life.
“[The opposition] is not only fragmented, it is leaderless,” said Marcelo J. Garcia, Americas director at Horizon Engage consultancy. “Milei is the only national leader that controls his political space, his political party. So that really plays to his advantage.”
Why should I care about Argentina? The Latin American nation of over 47 million people is better known for its soccer stars, beautiful Patagonian mountain range, and delicious beef steaks. But Milei is creating his own level of fame. His brash brand of chainsaw politics has become something exemplary for right wingers across the globe, with libertarians proclaiming his premiership as a paragon of success.
This election gives Argentinians the chance to say how they feel about Milei’s leadership, and whether he’s done enough to stabilize the country’s turbulent economy. It could have major ramifications for how Milei governs going forward, according to Mitchelstein.
“If he does well, if he gets, say, 40-42% of the vote, it will confirm his intuition, and it will probably make him more Milei than ever,” Mitchelstein told GZERO. “If he doesn't get that many votes, say, 37-38%, it might actually lead him to rethink his government, and also the way he’s been ruling.”
Argentina's President Javier Milei speaks during the CPAC (Conservative Political Action Conference) in Balneario Camboriu, Santa Catarina state, Brazil, July 7, 2024.
What We’re Watching: Milei deepens Israeli ties, China scales back on Nvidia, Russia doubles down on Ukraine
Milei seeks to spread Israel sympathies across LatAm
Milei seeks to spread Israel sympathies across LatAmAs several nations become increasingly critical of Israel’s tactics in Gaza in recent weeks, one is going in the other direction: Argentina wants to enhance Latin American ties with the Jewish state, via a $1-million initiative called the Isaac Accords. The program will hand research grants to pro-Israel projects conducted in Latin America. Argentine President Javier Milei aims to further expand his goodwill toward Israel next year by expanding the Isaac Accords to more regional countries.
China pressures tech giants over Nvidia AI chip orders
Beijing is demanding Chinese tech firms, including Alibaba and ByteDance, justify purchases of Nvidia’s H20 AI chips. China would prefer that the firms buy domestically. The move follows a deal allowing Nvidia to resume H20 sales in China by paying 15% of revenues to the US government. Now the Chinese scrutiny is prompting some companies to scale back orders, potentially cutting Nvidia’s China market share to 55% this year from 66% in 2024, amid ongoing US-China tech tensions.
Russia doubles down on Ukraine ahead of Alaska summit
In what seems to be an attempt to maximise its territorial gains ahead of Russian President Vladimir Putin’s upcoming summit with US President Donald Trump in Alaska, the Kremlin launched a fresh push in eastern Ukraine this week. The advance comes as Trump renewed his calls for both Moscow and Kyiv to cede territory for a potential peace deal. But while Putin may be showing resolve on the battlefront, he appears to face economic troubles at home: Russia has reportedly enlisted tens of thousands of North Koreans to fill labor shortages as its traditional workforce is increasingly pulled to the frontline.Deputy head of Russia’s Security Council Dmitry Medvedev delivers a speech during a session of the educational marathon “Knowledge. First” in Moscow, Russia, on April 29, 2025.
What We’re Watching: US-Russia tensions mushroom, Israeli minister prays by al-Aqsa mosque, Milei vetoes pension boost
US-Russia tensions escalate
Are the 1960s calling? A US president is repositioning nuclear submarines while Russia is carrying out previously scheduled anti-submarine drills – with China’s help – in the Sea of Japan. Donald Trump made the move on Friday after former Russian President Dmitry Medvedev, who is now deputy head of Russia’s Security Council, called the threat of US sanctions, “a step towards war.” Secretary of State Marco Rubio played down Medvedev’s words on Sunday, but the tensions remain. US special envoy Steve Witkoff visits Russia this week ahead of the deadline that Trump imposed on Russian President Vladimir Putin to end the Ukraine war or face expanded sanctions.
Israeli minister’s provocative prayers in Jerusalem
In a move that is sure to ignite fury across the Arab world, far-right Israeli minister Itamar Ben-Gvir on Sunday visited the Temple Mount in Jerusalem, known to Muslims as the Al Aqsa Mosque compound, and prayed there. The move breaks a decades-long arrangement under which Jews can visit the compound, the third-holiest Islamic site that also sits on the same plot as the first and second Jewish temples, but not pray there. Ben-Gvir’s move came after Hamas released videos Friday of emaciated hostages held in Gaza. The move recalls then-Israeli Prime Minister Ariel Sharon’s visit to the mount in 2000, a provocation that touched off the Second Intifada.
Argentina’s president vetos pension boost
The chainsaw stops for no one. Argentina’s ultra-libertarian President Javier Milei, who has already slashed billions from the federal budget, vetoed a proposal to increase pensions on Monday. “There is no money,” he said. It’s a risky move. Milei, elected in 2023, faces his first mid-term elections this fall. His cost-cutting has helped to tame Argentina’s notoriously high inflation, but the economy has struggled lately – the peso just posted its worst month since 2023 – and his cuts have generated some social backlash.A view of the Business School campus of Harvard University in Cambridge, Massachusetts, USA, on April 15, 2025.
HARD NUMBERS: Trump tries to ban foreign students at Harvard, Pensioners revolt in Argentina, Escaped bird ponders long flight home & more
7,000: The White House has scrapped Harvard University’s authorization to enroll foreign students, putting the school’s roughly 7,000 foreigners at risk of having to transfer elsewhere or go home. The Trump administration accuses Harvard of fostering antisemitism and violence, and of “coordinating with the Chinese Communist Party.” Harvard plans to appeal the move, which could affect a major source of income, as foreigners typically pay full tuition.
331: Dozens of people were injured in a protest by pensioners and activists outside the Argentine Congress on Wednesday. At issue are demands to raise the current pension level of $331 per month. President Javier Milei has opposed pension hikes as part of his “chainsaw” austerity drive.
81: US Sen. Lindsey Graham (R-SC) says he has gathered 81 co-sponsors for a bill that would impose a draconian 500% tariff on any countries that buy Russian energy. The biggest of those buyers is, of course, China. Trump reportedly told European leaders on Monday that Russian President Vladimir Putin isn’t ready to end the war, although the White House has disputed that account.
344%: The murder of two Israeli embassy staffers in Washington, D.C., has shined another light on the burgeoning wave of antisemitism in the United States and beyond. Antisemitic incidents across the US have increased by 344% in the last five years. Australia, Belgium and France have experienced similar surges, too.
27: A top Maoist leader was among 27 rebels killed by security forces in the central Indian state of Chhattisgarh on Wednesday, part of a government crackdown against this far-left insurgency. Nambala Keshava Rao was the highest profile rebel killed in decades. New Delhi has said it wants to end the insurgency in Chhattisgarh entirely by March 2026.
9,000: The Great Escape, bird edition: A juvenile East African crowned crane, known for its distinctive crown of golden feathers, broke out of a zoo in Washington state. If the bird is planning to return to its eponymous home, it will have to travel nearly 9,000 miles.
Meet María Corina Machado, the woman who scares Venezuela's dictator
Born and trained as an engineer, Venezuelan opposition leader María Corina Machado has become a powerful symbol of resistance. Once a fringe opposition politician who shocked the nation by interrupting Hugo Chavez, she now leads the charge against the dictatorial regime of his successor, Nicolás Maduro. Although she has gone into hiding, she has not kept quiet. Through remote interviews and media outreach, she's rallied support for the opposition and praised right-leaning Latin American leaders like Argentina’s Javier Milei and El Salvador’s Nayib Bukele. She defended the Trump administration’s recent move to cancel oil and gas licenses that had allowed energy companies to operate in Venezuela.
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People sit in a restaurant as Argentina's President Javier Milei is seen on television during an interview, in Buenos Aires, Argentina, on Feb. 17, 2025.
Could a crypto scam sink Milei?
Milei promoted a new cryptocurrency called $LIBRA on X last Friday, writing in a now-deleted post that the coin was aimed at “encouraging economic growth by funding small businesses and startups.” Milei also shared a link to something called the Viva La Libertad project, which says it launched the coin “in honor of Javier Milei’s libertarian ideas” and “to strengthen the Argentine economy from the ground up by supporting entrepreneurship and innovation.”
During the brief time Milei’s post was up – just a few hours – the coin’s price soared from nothing to about $5 before plummeting to less than a dollar. People who purchased the token at its highest price were left with a near-worthless coin, while some, including the token’s developers, made off with millions. Though Milei’s office denies any involvement in the coin’s creation or launch, a federal court in Argentina has started an investigation into the scandal, and opposition lawmakers are calling for his impeachment.
While Milei remains popular, he has struggled to pass legislation around his slash-and-burn economic agenda, and this scandal could widen the gulf between the president’s supporters and the opposition. Argentina is in the midst of a massive inflation crisis, which Milei’s shock therapy tactics aim to fix. Being embroiled in a scandal like this is the last thing Milei wants as the country heads into midterm elections this October.Argentina's President Javier Milei gestures during the Atreju political meeting organized by the young militants of Italian right-wing party Brothers of Italy (Fratelli d'Italia) at Circo Massimo in Rome.
Big milestone for Argentina’s radical president: Economy escapes recession
A year ago, Argentina’s eccentric, wolverine-haired, “anarcho-libertarian” president Javier MIlei took office with a chainsaw and a plan: to tackle the country’s triple-digit inflation and chronic debt problems, he would hack government spending to pieces — and it seems to be working.
Latin America’s third largest economy has emerged from recession for the first time since the third quarter of 2023, with GDP growing nearly 4% since then. Month-on-month inflation has plunged from 25% last December to just 2.4% a month ago.
How’d he do it? Since coming to office, Milei has scrapped more than half of the government ministries, slashed spending on public salaries, devalued the currency, and put pension growth in a chokehold.
The subsequent return to growth is a vindication for Milei, whose state-chopping has won him plaudits from financial markets and the International Monetary Fund. It’s also earned glowing admiration from Donald Trump who envisions a similar gutting of the US Federal government (though his protectionist impulses contrast with Milei’s purer market fundamentalism).
Milei’s approach has been painful for many. The percentage of Argentines living in poverty has surged by 13 percentage points to 53% since he took office. Milei’s bet is that this is merely short term pain. He could yet be right: experts see the economy expanding by 5% next year after contracting 3% in 2024. With mid-term elections approaching in 2025, we’ll soon learn how most ordinary Argentines feel about Milei’s methodical massacres.Demonstrators gesture during a march against the government of Argentina’s President Javier Milei on St. Cajetan’s Day, the patron saint of the unemployed, in Buenos Aires, Argentina August 7, 2024.
Inflation inferno: Argentine unions turn up the heat
Argentine university workers plan a 72-hour strike to demand higher wages starting on Monday, Tuesday, and Wednesday. The government is offering an increase of 3% for August and 2% for September, which the unions have deemed unacceptable. Data for the first half of 2024 shows Argentina with the highest cumulative inflation worldwide at 80% and a peak year-on-year inflation of 271.5%.
The private sector is also feeling the heat, as unions for the country’s soybean workers demand that processing companies approve wage hikes above the country’s inflation rate. Argentina produces a third of the world’s soybean meal and exports much of it to China, which provides a crucial source of Buenos Aires’ foreign reserves. Last Tuesday, Argentine workers began a strike against their employers that shut down processing plants and caused loading delays for 36 ships.
These strikes are at the heart of the political debate over President Javier Milei’s promises to improve Argentina’s flailing economy — with some tough love if necessary. Labor unions have conducted two general strikes, including one in May that saw 400 flights canceled and transport lines shut down as trash collectors, teachers, and health workers walked off the job, and banks, businesses, and state agencies closed for the day.
In an exclusive GZERO interview with Eurasia Group President Ian Bremmer last week, Milei acknowledged that “Life is going to be harder for the average Argentinian citizen” but defended his radical approach to saving Argentina’s struggling economy. We’ll be watching whether this latest round of strikes changes his tune.