The Intelligence from The Economist Let Milei this out: Argentina’s midterms surprise
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Oct 27, 2025 
Hal Hodson, America editor at The Economist, and Tom Nuttall, Berlin bureau chief, dive into the unexpected victory of Javier Milei in Argentina's midterms, analyzing its implications for his ambitious economic reforms. Hodson discusses the challenges Milei faces in coalition-building and managing the peso, while Nuttall critiques Germany's lackluster reform efforts under the Merz government. They also touch on how video games are becoming harder again, exploring the balance between challenge and accessibility in modern design.
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Milei's Midterm Win Eases Short-Term Pressure
- Javier Milei's party won a landslide in Argentina's midterms, easing immediate market pressure and giving him the ability to defend vetoes in Congress.
- The victory buys breathing room but does not solve deep issues like reserves, the overvalued peso, or the need for coalition-building to pass major reforms.
Short-Term Market Relief, Long-Term Currency Risks
- The electoral win will likely lift Argentine asset prices and stop the peso's slide in the short term, making governance easier for Milei.
- Significant challenges remain, including $18bn of debt due in 2026 and an overvalued peso that markets eventually may force to adjust.
Float The Peso To Fix Fundamentals
- Economists argue Milei should float the peso as soon as possible to let market forces and normal monetary policy address inflation.
- Political considerations and prior promises not to change the exchange-rate regime may prevent him from doing so.
