President Javier Milei aims to uphold his libertarian revolution within the temporary brick dwellings and vacant warehouses of Argentina’s most perilous district during his pivotal election. The leader, embroiled in controversy, commenced his assembly campaign in La Matanza. The vote on September 7 serves as a precursor to the midterm elections in October, during which Milei requires an increased number of House seats to advance pro-business legislation.
In recent days, there has been a notable exodus of investors from Argentine assets, prompted by a bribery scandal involving the President’s sister, which has raised concerns regarding his electoral appeal. The significant defeat experienced by Milei’s allies on Sunday could exacerbate the ongoing selloff, whereas a victory, tie, or closely contested loss in the opposition-controlled province may enhance his mandate for austerity measures. Thierry Larose stated, “Our view is that the market is pricing in a significant defeat,” for the administration. He regarded market losses exceeding five percentage points as “serious” and those surpassing 10 percentage points as “very concerning”. In an effort to address prolonged economic stagnation, Trump supporter Milei has implemented cuts to public expenditure and pursued the privatization of state-owned enterprises since 2023. More than 40% of Argentina’s electorate resides within the 135 municipalities of Buenos Aires, which encompasses 1.8 million individuals from La Matanza. Milei attributes the majority of Argentina’s issues to Peronism, the province’s nationalist and economic populist movement.
Leila Gianni, stated that the president selected La Matanza to exemplify the failures of Peronism. The national average significantly lags behind the poverty rates observed beyond the capital. Gianni stated that the region is ensnared by a disheartening economic framework that instills fear in the populace and drives away potential job creators. Gianni shared videos showcasing an urgent care facility devoid of signage, a refuse incineration site, and a stream conducive to mosquito proliferation, aiming to critique the mayor’s administration. A local media outlet released leaked recordings of the dismissed ANDIS director conversing about pharmaceutical payments concerning Milei’s sister, Karina Milei, last month, adversely affecting Gianni and other loyalists of Milei. Agitated protesters hurled stones at the President amidst the campaign following the event. The administration refutes any allegations of wrongdoing. Argentina’s dollar bonds experienced a decline of 4.1 percent last month, in contrast to a 1.5 percent increase in developing-world debt. The currency markets are experiencing significant volatility, accompanied by an increase in political risks.
“Current bond prices still reflect some lingering scepticism about whether there will be sufficient political support to sustain the economic reforms,” stated Pedro Quintanilla-Dieck. This week, Argentina’s currency experienced a rebound from its historic lows following government intervention. A peso band floatation and free-market economics government is undergoing transformation. Milei’s supporters, now embroiled in scandal, could see a decline in attendance, raising concerns among investors. Voters are in search of remedies for unemployment, poverty, and violence in the unpaved, litter-laden streets of La Matanza, particularly around Gianni, a small mother of five. Milei’s most significant advantage lies in his ability to shield customers from price surges. July inflation decreased from 300% last year to 37%. Miriam Castaño, 50, credited Milei’s success to his efforts in curbing inflation, even as her apparel kiosk faced a downturn in sales due to austerity measures, ultimately leading to its closure.
In July, her earnings amounted to $515. Milei’s ability to dismantle Peronist governance within a single term was a source of astonishment for her. Despite lacking information regarding the charges against Milei’s sister, Castaño maintained an impartial stance in her decision-making process. “I believed in Milei,” she stated. I have shut down my store and am facing difficulties, yet I will cast my vote for him.