is going through the"biggest crisis of his presidency," according to the British newspaper Financial Times (FT), and the situation has markets and voters nervous six weeks before midterm elections that he defines as critical.

In an analysis written by Ciara Nugent from London, it is mentioned that"after a largely successful first year of government, when falling inflation boosted solid popular support for Milei's austerity, the last few months have hit the Government hard."

The article lists corruption suspicions involving Karina Milei, the slowdown in the economic recovery, and the dispute with allies in Congress as factors that led to a drop in the President's approval rating below 40 percent for the first time. And as a corollary to all this, the defeat in the legislative elections in the Province of Buenos Aires.

"Investors and analysts warned that the government must recover quickly. Otherwise, it risks a run on the peso and a poor showing in the October midterm elections, where Milei is seeking to expand her small minority in Congress to deepen her free-market reforms," the FT notes.

The article quotes an anonymous source, an ally of Milei, who says that last Sunday's result at the polls was"a wake-up call".

"Milei likes to think of himself as a big lion, untouchable, on his pedestal... the lion has been hosed down," says the same source about the defeat of the libertarians in Buenos Aires territory.

The FT notes that the"bellicose President has been unusually distressed since the election" and has promised deep self-criticism.

And he notes that after some modest Cabinet changes and a lukewarm rapprochement with provincial governors, Argentine sovereign debt yields in dollars, which had risen 2 percentage points, fell slightly as investors took note of Milei's efforts.

"However, the President faces serious dilemmas. Provincial governors will pressure the weakened government to inject funds into their regions in exchange for supporting his reforms, and Milei has ruled out any measure that threatens his goal of fiscal balance," warns the FT.

The economic daily estimates that Milei will fare better in the national legislative elections on October 26 than her recent performance at the Buenos Aires polls, and notes that the majority estimates that"winning 40 percent of the national vote would help defuse the crisis."

Finally, the article quotes a government official warning of changes needed to be made in the ruling party's approach to weather the storm:"We should be more pragmatic. If you don't have allies, the opposition will be the first to hurt you when your popularity falls."

D.D.