BUENOS AIRES, Argentina: Argentine President Javier Milei suffered a significant political blow on September 7 after his libertarian movement fared poorly in a closely watched provincial election in Buenos Aires, a contest widely interpreted as a bellwether for the upcoming congressional midterms.

The defeat, delivered in Argentina's most populous province, underscored both the mounting challenges facing Milei's young administration and the resilience of the country's Peronist opposition.

Milei's La Libertad Avanza party managed to capture just 34 percent of the vote, falling far short of the 47 percent secured by the Peronists, who were buoyed by grassroots organization and enduring loyalty among working-class voters. With nearly all ballots counted, the scale of the 13-point loss was evident. Milei himself acknowledged the setback, telling somber supporters at party headquarters that the results amounted to "a clear defeat."

"We suffered a setback, and we must accept it responsibly," Milei admitted in a subdued tone. While conceding mistakes, he vowed to reassess his political strategy without abandoning his economic overhaul. "If we've made political mistakes, we're going to internalize them, process them, and modify our actions," he said, before reaffirming, "There will be no retreat in government policy."

The Buenos Aires result rattled Milei's allies, who had expected a closer race. Analysts warned that such a lopsided outcome could embolden his rivals just weeks ahead of October's midterms, when Milei will attempt to expand his party's tiny congressional minority in order to pass sweeping reforms. For investors and financial markets, already wary of Argentina's fragile economy, the setback raises new questions about the viability of Milei's libertarian project.

The Peronists, now the largest bloc in Argentina's fragmented legislature, have consistently resisted Milei's austerity program, pushing instead for expanded social spending. Their victory in Buenos Aires offered a morale boost at a time when Milei is grappling with corruption allegations involving his sister, rising unemployment, and popular discontent with the painful consequences of his policies.

Former president Cristina Fernández de Kirchner, the Peronist heavyweight still under house arrest following a corruption conviction, wasted no time in taunting Milei. From her home balcony, she greeted jubilant crowds while posting on social media: "Did you see that, Milei? Get out of your bubble, brother. Things are getting heavy."

Though legally barred from seeking office, Fernández remains the symbolic leader of Peronism, which has shaped Argentine politics since the 1940s.

The election also elevated Axel Kicillof, the left-wing governor of Buenos Aires province, as a potential future leader of the movement. In a triumphant speech, Kicillof declared that voters had sent Milei a clear message.

"The ballot boxes told Milei that public works cannot be halted, that retirees cannot be beaten, that education, healthcare, science, and culture cannot be defunded," he proclaimed.

For Milei, the defeat highlights the gap between his ideological vision and the lived realities of ordinary Argentines. While he has succeeded in cutting triple-digit inflation and securing a US$20 billion IMF bailout, the promised revival has yet to materialize.

Consumer confidence is sliding, jobs are scarce, and Argentines face soaring interest rates alongside crippling debt. As October's midterms approach, the Buenos Aires vote serves as both a warning and a test of whether Milei's radical experiment can withstand the country's turbulent political landscape.