Argentina is counting the cost of its turn to populist President Javier Milei, with economists and politicians worldwide watching closely as his radical economic policies collide with reality. Milei's approach—extensive privatisations, deep public spending cuts, and a currency cap to tame triple-digit inflation—has won IMF plaudits but left the economy stagnant, with 18,000 businesses closed and 253,800 jobs lost between December 2023 and July 2025, according to the Centre for Argentine Political Economy (CEPA).
On Buenos Aires' Florida Street, money changers known as arbolitos thrive ahead of the 26 October midterm elections, expecting a peso devaluation once voting ends. Textile industrialist Luciano Galfione, whose family company has operated for 75 years, calls the current period 'the worst moment in its history,' having laid off nearly 50 workers and suspended 45 more as consumption slumped. 'It's the perfect storm,' he says, noting that Milei's only achievement so far is containing inflation at the cost of a major recession.
Milei's populist blueprint shares key characteristics with allies like Donald Trump, who has offered a $20bn (£15bn) currency lifeline to prop up the peso, and UK's Nigel Farage, who styles himself as a people's champion. However, financial markets have lost confidence in Milei's project after shaky provincial election results and corruption scandals. Only massive US intervention has averted a full-blown currency crisis.
Across Europe, the aftermath of the 2008 financial crisis, Covid pandemic, and Russia's invasion of Ukraine have fuelled populist movements. In France, President Emmanuel Macron avoids calling a snap election for fear of Marine Le Pen's populist challenge. Argentina's experience serves as a cautionary tale for populists worldwide, as the costs of simple answers to complex economic problems become apparent.
