United States President Donald Trump has pledged to boost Argentina\u2019s economy with a $20bn currency swap, but only if the South American country\u2019s right-wing president prevails in the upcoming elections.<\/p>\n
The president, the self-described anarcho-capitalist Javier Milei, was in Washington, DC, on Tuesday for his latest visit to the White House.<\/p>\n
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\u201cWe think he\u2019s going to win. He should win. And if he does win, we\u2019re going to be very helpful,\u201d Trump said. \u201cAnd if he doesn\u2019t win, we\u2019re not going to waste our time, because you have somebody whose philosophy has no chance of making Argentina great again.\u201d<\/p>\n
Since taking office in December 2023, Milei has made at least a dozen trips to the US, including to attend Trump\u2019s second inauguration. The two leaders share a strong public bond.<\/p>\n
But Milei\u2019s latest meeting with Trump comes as his political coalition, La Libertad Avanza (Freedom Advances), faces a series of scandals heading into Argentina\u2019s midterm elections on October 26.<\/p>\n
Trump appeared eager to help Milei overcome his drooping poll numbers on Tuesday, as he hosted the Argentinian leader in the White House\u2019s cabinet room.<\/p>\n
He explained to reporters that the economic safety net that the US was giving to Argentina was his way of \u201chelping a great philosophy take over a great country\u201d.<\/p>\n
\u201c\u200aYou\u2019re going to win the election,\u201d Trump told Milei. \u201cWe\u2019re going to endorse you. I\u2019m going to endorse you today, fully endorse you. People in Argentina like me. A lot of people like me.\u201d<\/p>\n
A conditional bailout<\/p>\n
The conditional nature of the Argentinian bailout has raised questions about Trump\u2019s commitment to propping up Argentina\u2019s ailing economy.<\/p>\n
Milei\u2019s surprise victory in the 2023 presidential election was widely seen as a backlash against the previous left-wing government of Alberto Fernandez, under whose leadership inflation spiralled to more than 200 percent.<\/p>\n
However, while Milei has reduced inflation, the value of the Argentinian peso remains low, and critics have accused the South American president of slashing government programmes for low-income residents, exacerbating poverty.<\/p>\n
One reporter on Tuesday asked Trump outright if the US\u2019s support for Argentina depended on a win for La Libertad Avanza in the upcoming elections.<\/p>\n
\u201c\u200aWell, I think if they don\u2019t do that, we\u2019re not going to be around very long,\u201d Trump replied.<\/p>\n
The US president then mused about a potential loss for Milei\u2019s party. \u201cWe would not be generous with Argentina if that happened. If he loses, we are not going to be generous with Argentina.\u201d<\/p>\n
Trump also alluded to the potential for further economic turmoil should Milei\u2019s \u201cextremely far-left\u201d rival prevail, though it was unclear which opposition figure he was referring to.<\/p>\n
Milei himself is not on the ballot on October 26, but his party, La Libertad Avanza, will be competing for half the seats in Argentina\u2019s Chamber of Deputies and a third in its Senate.<\/p>\n
Control of Argentina\u2019s National Congress will determine whether Milei can continue to carry out his wide-reaching austerity measures, among them being a push to overhaul the federal government.<\/p>\n
Milei has illustrated the dramatic nature of his cost-cutting campaign by turning to props: He was known for wielding a chainsaw on stage during his presidential bid and whacking pi\u00f1atas emblazoned with the name of Argentina\u2019s Central Bank.<\/p>\n
Backlash to Milei<\/p>\n
But while Milei\u2019s victory in the 2023 presidential race was a strong rebuke to Argentina\u2019s left wing, more recent races have shown public support for his agenda cooling.<\/p>\n
On September 7, the province of Buenos Aires, where the capital is located, held elections for its congressional seats, and La Libertad Avanza was trounced by a rival coalition, the left-wing Justicialist Party.<\/p>\n
The party took more than 46 percent of the vote, compared with La Libertad Avanza\u2019s 34 percent.<\/p>\n
Also that month, Milei suffered a personal scandal when his sister and close associate, Karina Milei, was implicated in a bribery affair.<\/p>\n
Karina Milei serves as secretary-general to the presidency, and leaked audio released to Argentinian media appears to show the then-head of the National Disability Agency accusing her of accepting kickbacks in exchange for government contracts.<\/p>\n
Both of the Milei siblings have denied the charges, and so far, Javier has stood by his sister. The resulting scandal, however, has cast a stark spotlight on Milei\u2019s actions as president.<\/p>\n
Milei had vetoed congressional legislation that would have increased benefits for people with disabilities, but in September, the National Congress pushed back, forming an overwhelming supermajority to overturn his veto, by a vote of 63 to seven.<\/p>\n
It has since repeated the feat, overriding Milei\u2019s vetoes to restore congressional funding for universities and paediatric healthcare.<\/p>\n
Still, despite the setbacks, Trump and his officials used Tuesday\u2019s meeting as a platform to promote Milei\u2019s agenda and project confidence in his party\u2019s midterm prospects.<\/p>\n
\u201cWe think he\u2019s going to do quite well and then continue his reform agenda,\u201d Secretary of the Treasury Scott Bessent told reporters.<\/p>\n
Projecting confidence<\/p>\n
Like Trump, Bessent emphasised that the $20bn promised to Argentina was hinged on Milei\u2019s electoral successes.<\/p>\n
\u201cWe\u2019re confident that the president\u2019s party will, and the coalition will, do well in the election, and this aid is predicated on robust policies,\u201d Bessent said. \u201cGoing back to the failed Peronist policies would cause a US rethink.\u201d<\/p>\n
Trump, meanwhile, acknowledged that Argentinian voters may be experiencing \u201csome pain\u201d as a result of Milei\u2019s economic reform.<\/p>\n
But he defended Milei, arguing that \u201cArgentina would be lost if he wasn\u2019t there\u201d.<\/p>\n
When asked what his advice would be to the South American leader, Trump used the question to blame the news media for presenting Milei in a bad light.<\/p>\n
\u201cMy advice is to hold strong to his principles, because he\u2019s right, and he\u2019s proving that he is right. He\u2019s got one problem. He\u2019s got people that are giving him tremendously bad press,\u201d Trump said.<\/p>\n
\u201cEverybody knows he\u2019s doing the right thing. But you have a radical-left sick culture that\u2019s a very dangerous group of people, and they\u2019re trying to make him look bad.\u201d<\/p>\n
The remarks were a reflection of Trump\u2019s own adversarial relationship with the press. During his appearance with Milei, Trump once again took the opportunity to slam domestic journalism outlets like ABC News, labelling the channel \u201cfake news\u201d.<\/p>\n
Trump, who campaigned on an \u201cAmerica First\u201d platform, has faced scrutiny over his outreach to Argentina.<\/p>\n