Argentine President Javier Milei faces a crucial challenge: a local election in the province of Buenos Aires on September 7, a stronghold of Peronism that accounts for nearly 40% of the national electorate, according to Reuters. Although his austerity plan has significantly reduced inflation—expected to be below 30% annually—these measures have also caused social tensions, with protests from retirees, teachers, and doctors.
Recent polls show a very tight race between Peronism and Milei's party, La Libertad Avanza (LLA), with the former having slightly higher support. Analysts warn that a setback in Buenos Aires could undermine investor confidence and weaken the government's ability to consolidate its economic reforms before the legislative elections in October.
This is a litmus test: the result in September will determine whether Milei can maintain the political momentum to advance his agenda or if he will face significant obstacles in Congress.