Peronism Crushes Milei in Historic Buenos Aires Victory: A Political Earthquake in Argentina

Buenos Aires provincial election results delivered a crushing blow to President Javier Milei’s government on September 7, 2025. Official data confirmed the Peronist coalition Fuerza Patria secured 47% of votes against Milei’s La Libertad Avanza party’s mere 33.8%.

The 13.2-point margin represents the libertarian president’s worst electoral defeat since taking office. The outcome carries enormous economic significance.

Buenos Aires province generates 30% of Argentina’s GDP and houses 40% of the national electorate. Markets braced for turbulence as the peso already weakened 2.5% in recent months amid political uncertainty.

Governor Axel Kicillof emerged as the night’s biggest winner. Supporters chanted “Axel for president” as results poured in, positioning the 52-year-old economist as Peronism’s leading figure for 2027.

His decision to separate provincial elections from national ones proved masterful strategy. The defeat stems partly from a damaging corruption scandal involving Karina Milei, the president’s powerful sister and chief of staff.

Audio recordings surfaced in August allegedly showing her involvement in pharmaceutical contract kickbacks worth hundreds of thousands of dollars. The recordings created what government officials called “unprecedented scandal” just weeks before voting.

Former President Cristina Fernández de Kirchner watched results from house arrest, where she serves a six-year corruption sentence.

The Supreme Court upheld her conviction in June 2025 for fraudulent public works contracts that allegedly enriched businessman Lázaro Báez by 20% above normal rates. Despite her legal troubles, she remains Peronism‘s most influential figure.

Milei acknowledged the “clear defeat” from a nearly empty campaign headquarters in La Plata. He promised to accelerate his economic policies rather than change course.

However, the opposition-controlled Congress has already begun pushing back, overriding his veto on disability benefits just days before the election.

The peso traded at 1,365 per dollar on September 8, reflecting ongoing pressure despite government interventions. Interest rates have climbed as authorities struggle to maintain currency stability ahead of crucial national midterm elections on October 26.

Economic data shows mixed results for Milei‘s shock therapy. Monthly inflation dropped from 25.5% in December 2023 to around 2.7% by late 2024, but unemployment rose and consumer confidence fell.

The current account deficit reached $5.2 billion in the first quarter of 2025. The Buenos Aires results serve as a critical barometer for October’s national elections, where half the lower house and one-third of the Senate will be renewed.

Polls previously showed La Libertad Avanza leading with 39% against Peronism’s 28% nationally, but Sunday’s crushing defeat may reshape those projections.

Peronism dominated six of eight electoral sections in Buenos Aires province, including decisive victories in areas representing nearly 60% of eligible voters.

The coalition secured 34 legislative seats compared to La Libertad Avanza’s 26, strengthening their position in provincial government.

Kicillof’s gamble to separate elections from the national calendar succeeded spectacularly. Cristina Kirchner had opposed the strategy, fearing it would weaken October campaigns.

Now the governor can claim vindication while positioning himself as Peronism’s unifying leader. The corruption scandal surrounding pharmaceutical contracts particularly damaged Milei’s anti-establishment brand.

Audio recordings allegedly captured former disability agency director Diego Spagnuolo describing kickback schemes involving Karina Milei and senior aide Eduardo Menem. The government fired Spagnuolo but struggled to contain political fallout.

Financial markets face renewed volatility as investors reassess Milei’s reform agenda. His libertarian experiment includes dollarization plans and massive state reduction, but strengthened opposition may block key legislation.

The peso’s 42.74% decline over 12 months reflects persistent economic challenges. October’s midterm elections will determine whether Buenos Aires represents isolated setback or broader political realignment.

Peronism has proven its enduring appeal despite corruption scandals and economic crises. Milei must now navigate weakened position heading into crucial congressional battles that will define his presidency’s trajectory.