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An abortion ruling has Democrats hoping Florida is in play

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Two decisions by Florida’s Supreme Court shook up the Sunshine State this week. The first, which paves the way for a six-week abortion ban to start on May 1st, will have immediate consequences for millions of women. The second, which approved a ballot initiative that would amend Florida’s constitution to protect abortion, could prove even more significant. A referendum in November will allow Floridians to have a decisive say on the state’s abortion policy.

The court’s first decision in effect upholds a six-week ban passed by the state legislature and signed by Governor Ron DeSantis last year. Only limited exceptions beyond that period are allowed, making Florida one of the most restrictive states in the land. The decision to allow abortion on to the ballot follows an energetic grassroots campaign that collected over 1m signatures (reportedly 150,000 of them registered Republicans). The two rulings have left Democrats believing that they now may have a shot at winning the state in November’s presidential election.

The implications of the six-week ban are serious. Florida accounted for about one in 12 abortions in America in 2023—a total of more than 86,000. And because the state has become a destination for women from neighbouring states with stricter rules, the ruling will hurt them too. Florida was one of the states that saw the greatest surge in visitors following the Dobbs ruling that overturned Roe v Wade. The state’s ban will cut off nearly all access to abortion in the South.

Those women will need to go elsewhere for terminations beyond six weeks, a point at which many do not even know they are pregnant. Some will try to get their hands on abortion pills by post. Although unlawful under Florida’s ban, such pills are increasingly available. Other women will have to travel long distances. No single state is big enough to make up the difference.

Yet in the longer term, the extremity of the ban could, perversely, help women who are seeking abortions. This is because of the court’s decision to allow Floridians to vote on a constitutional right to abortion until viability (typically 23-24 weeks). If over 60% of voters support the amendment, the six-week ban would be overturned.

Such ballot initiatives have sprung up around America since the Dobbs decision. In all six referendums held so far, voters have chosen to protect abortion. Abortion-rights advocates in a dozen states are now trying to place the issue on the ballot in November. Democrats across the country hope these referendums will mobilise voters who otherwise may not have felt inspired to get out and vote for Mr Biden.

In Florida, that looks like a decent bet. Most Floridians, including 60% of Republicans, oppose a six-week abortion ban, and will now have an opportunity to stop it. (A second referendum, also allowed on to the ballot by the state court, on the recreational use of marijuana, is also bound to mobilise some voters.)

Whether this potential mobilisation of otherwise stay-at-home voters will prove sufficient to swing the state for Mr Biden is another matter. Nikki Fried, chair of the Florida Democratic Party, thinks that the state is back in play. “Everything is on the line,” she says. She predicts “a ground game that we really haven’t seen in the state of Florida since Obama.”

The polls are certainly on Democrats’ side: 81% of Americans recently told an Ipsos/Axios poll that abortion should be managed between a woman and her doctor, not the government. And yet pollsters and political scientists warn that the Democrats may need a reality check. The party has haemorrhaged registered voters in Florida in recent years, a shift that helped Mr DeSantis win a 20-point landslide in 2022.

“This is not just about whether Biden can win Florida,” says Aubrey Jewett, a political scientist at the University of Central Florida. Even with the abortion-rights referendum, that will be very hard, he reckons. But the race looks more competitive than it was a week ago.

Economics

Donald Trump sacks America’s top military brass

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THE FIRST shot against America’s senior military leaders was fired within hours of Donald Trump’s inauguration on January 20th: General Mark Milley’s portrait was removed from the wall on the E-ring, where it had hung with paintings of other former chairmen of the joint chiefs of staff. A day later the commandant of the coast guard, Admiral Linda Fagan, was thrown overboard. On February 21st it was the most senior serving officer, General Charles “CQ” Brown, a former F-16 pilot, who was ejected from the Pentagon. At least he was spared a Trumpian farewell insult. “He is a fine gentleman and an outstanding leader,” Mr Trump declared.

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Checks and Balance newsletter: The journalist’s dilemma of covering Trump

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Checks and Balance newsletter: The journalist’s dilemma of covering Trump

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Germany’s election will usher in new leadership — but might not change its economy

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Production at the VW plant in Emden.

Sina Schuldt | Picture Alliance | Getty Images

The struggling German economy has been a major talking point among critics of Chancellor Olaf Scholz’ government during the latest election campaign — but analysts warn a new leadership might not turn these tides.

As voters prepare to head to the polls, it is now all but certain that Germany will soon have a new chancellor. The Christian Democratic Union’s Friedrich Merz is the firm favorite.

Merz has not shied away from blasting Scholz’s economic policies and from linking them to the lackluster state of Europe’s largest economy. He argues that a government under his leadership would give the economy the boost it needs.

Experts speaking to CNBC were less sure.

“There is a high risk that Germany will get a refurbished economic model after the elections, but not a brand new model that makes the competition jealous,” Carsten Brzeski, global head of macro at ING, told CNBC.

The CDU/CSU economic agenda

The CDU, which on a federal level ties up with regional sister party the Christian Social Union, is running on a “typical economic conservative program,” Brzeski said.

It includes income and corporate tax cuts, fewer subsidies and less bureaucracy, changes to social benefits, deregulation, support for innovation, start-ups and artificial intelligence and boosting investment among other policies, according to CDU/CSU campaigners.

“The weak parts of the positions are that the CDU/CSU is not very precise on how it wants to increase investments in infrastructure, digitalization and education. The intention is there, but the details are not,” Brzeski said, noting that the union appears to be aiming to revive Germany’s economic model without fully overhauling it.

“It is still a reform program which pretends that change can happen without pain,” he said.

Geraldine Dany-Knedlik, head of forecasting at research institute DIW Berlin, noted that the CDU is also looking to reach gross domestic product growth of around 2% again through its fiscal and economic program called “Agenda 2030.”

But reaching such levels of economic expansion in Germany “seems unrealistic,” not just temporarily, but also in the long run, she told CNBC.

Germany’s GDP declined in both 2023 and 2024. Recent quarterly growth readings have also been teetering on the verge of a technical recession, which has so far been narrowly avoided. The German economy shrank by 0.2% in the fourth quarter, compared with the previous three-month stretch, according to the latest reading.

Europe’s largest economy faces pressure in key industries like the auto sector, issues with infrastructure like the country’s rail network and a housebuilding crisis.

Dany-Knedlik also flagged the so-called debt brake, a long-standing fiscal rule that is enshrined in Germany’s constitution, which limits the size of the structural budget deficit and how much debt the government can take on.

Whether or not the clause should be overhauled has been a big part of the fiscal debate ahead of the election. While the CDU ideally does not want to change the debt brake, Merz has said that he may be open to some reform.

“To increase growth prospects substantially without increasing debt also seems rather unlikely,” DIW’s Dany-Knedlik said, adding that, if public investments were to rise within the limits of the debt brake, significant tax increases would be unavoidable.

“Taking into account that a 2 Percent growth target is to be reached within a 4 year legislation period, the Agenda 2030 in combination with conservatives attitude towards the debt break to me reads more of a wish list than a straight forward economic growth program,” she said.

Change in German government will deliver economic success, says CEO of German employers association

Franziska Palmas, senior Europe economist at Capital Economics, sees some benefits to the plans of the CDU-CSU union, saying they would likely “be positive” for the economy, but warning that the resulting boost would be small.

“Tax cuts would support consumer spending and private investment, but weak sentiment means consumers may save a significant share of their additional after-tax income and firms may be reluctant to invest,” she told CNBC.  

Palmas nevertheless pointed out that not everyone would come away a winner from the new policies. Income tax cuts would benefit middle- and higher-income households more than those with a lower income, who would also be affected by potential reductions of social benefits.

Coalition talks ahead

Following the Sunday election, the CDU/CSU will almost certainly be left to find a coalition partner to form a majority government, with the Social Democratic Party or the Green party emerging as the likeliest candidates.

The parties will need to broker a coalition agreement outlining their joint goals, including on the economy — which could prove to be a difficult undertaking, Capital Economics’ Palmas said.

“The CDU and the SPD and Greens have significantly different economic policy positions,” she said, pointing to discrepancies over taxes and regulation. While the CDU/CSU want to reduce both items, the SPD and Greens seek to raise taxes and oppose deregulation in at least some areas, Palmas explained.

The group is nevertheless likely to hold the power in any potential negotiations as it will likely have their choice between partnering with the SPD or Greens.

“Accordingly, we suspect that the coalition agreement will include most of the CDU’s main economic proposals,” she said.

Germany is 'lacking ambition,' investor says

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