BUENOS AIRES, Argentina – Argentine President Javier Milei suffered a sweeping setback on Sunday in a Buenos Aires provincial election widely viewed as a political test for his libertarian party and a barometer for how it will perform in crucial congressional midterms next month.


Milei's La Libertad Avanza party captured just 34% of the vote in Argentina’s biggest province, losing by a landslide to the left-leaning Peronist opposition, which secured 47% with the majority of ballots counted late Sunday.


Milei conceded that the right-wing party’s crushing 13-point loss represented “a clear defeat.”


“We suffered a setback, and we must accept it responsibly,” Milei told supporters at the party headquarters, his tone reflective, even chastened.


“If we’ve made political mistakes, we’re going to internalize them, we’re going to process them, we’re going to modify our actions,” he said.


Still, he vowed to stick with his sweeping economic overhaul, saying: “There will be no retreat in government policy.”


With Milei struggling to stabilize a sputtering economy and facing internal scandals ahead of the midterm elections, the results raised concerns among investors regarding the stability of the Argentine market.


“This result is a key data point to understand the social mood — where the opposition stands, the state of Peronism and the level of support for the government,” said Juan Cruz Díaz, head of Cefeidas Group, a Buenos Aires consultancy.


Despite Milei's promises of economic revival, inflation remains high, consumer confidence is dwindling, and interest rates continue to soar. The electoral results serve as a wake-up call for the government, highlighting the significant public dissatisfaction with Milei’s policies.


Former President Cristina Fernández de Kirchner, a key figure of the Peronist movement, celebrated the victory, as her party's resurgence suggests a shifting political landscape. The upcoming midterm elections now loom larger for Milei, who must secure legislative support for his radical reforms amidst an unfriendly congress.