Milei crisis deepens: scandals, defeats and stagnant economy put government in check even with US support

The Argentine government was shaken by allegations of corruption affecting Karina Milei, sister of the president and general secretary of the Presidency. Leaked audios indicate that she and her allies were involved in a scheme to charge bribes from pharmaceutical companies in exchange for public contracts. The case also involves the National Agency for People with Disabilities, headed until August by Diego Spagnuolo, a lawyer close to the president.

The accusations are particularly damaging because Karina is considered the most influential figure in Milei’s inner circle, called by him “the boss”. During the campaign and at the beginning of his term, the president reinforced that she had great influence on his decisions. This turned the complaint into a direct blow to the “chainsaw” discourse against corruption and the rhetoric confronting the so-called “political caste”.

The episode affected the president’s public image and caused turbulence in the financial market. Furthermore, it opened space for the opposition to intensify criticism, reinforcing the narrative that the government is no different from previous ones.

United States support

Faced with uncertainty, Milei sought international support. At the end of September, Donald Trump declared explicit support for his re-election, describing him as a “fantastic leader”. In the same vein, American Treasury Secretary Scott Bessent announced a US$20 billion financial aid package for Argentina, classifying the country as “a strategic ally in Latin America”.

The announcement brought momentary relief to the market, but still lacks details about deadlines and conditions. For analysts, the aid avoided an “immediate sinking”, but it does not guarantee the recovery of the Argentine economy nor resolve popular dissatisfaction. The general perception is that the gesture has more political weight than practical effect in the short term.

In Argentina, Trump and Bessent’s statements do not seem to influence the electorate. Researchers point out that citizens remain concerned about the stagnation of the economy and the difficulty in maintaining consumption. In this sense, American support works more as a breather for Milei’s administration to go through the legislative electoral process than as a factor capable of reversing his decline in popularity.

Electoral defeats and drop in popularity

Another critical point for Milei was the significant defeat of his party, A Liberdade Avança, in the legislative elections in the province of Buenos Aires, which accounts for almost 40% of the Argentine electorate. The result strengthened Kirchnerism, led by governor Axel Kicillof, and highlighted the president’s difficulty in expanding his political base outside of social networks and specific sectors of the population.

After the defeat, Milei adopted a more conciliatory tone in his speeches, even giving up his aggressive catchphrases. However, opinion polls reveal a significant drop in his approval: more than half of the population disapproves of his management, and support has fallen by around 10 percentage points in two months. Voter fatigue with his confrontational style is cited as one of the main reasons for this trend.

In addition to the polls, Milei suffered defeats in Congress, where he lost important votes on the budget for universities and pediatric hospitals. With just 37 deputies and six senators, his party depends on alliances that are increasingly fragile. This increased the perception of the president’s political isolation and reinforced speculation that he may face difficulties in completing his term until 2027.