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Dan Osborn shows some Democratic ideas can outperform the party

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DAN OSBORN, a candidate for the Senate in Nebraska, has a fable he recounts on the campaign trail. First told by a Canadian trade unionist in the 1960s, Mr Osborn’s version goes like this: “It’s a story about a society of mice that happens to be ruled by cats. The mice are just like our society. They go to work every day, they send their kids to school.” And each election, they pick from a crowd of cats to rule them. Eventually, “the mice wake up”. They realise the problem: it is not that “we’re electing the wrong kind of cat”. It is that “we’re electing cats”. Mr Osborn says that what makes him different is that he is “not ashamed to admit that I’m a mouse.”

The polls suggest he has a small but real chance of becoming a very powerful rodent. In this election, Democrats seem likely to lose their tiny majority in the upper chamber. But in staunchly Republican Nebraska, Deb Fischer, the state’s senior senator, faces an unexpectedly difficult fight to keep her seat. Mr Osborn managed to manoeuvre himself into being the only other serious candidate (the Democratic Party chose not to put anybody up). He is showing that, even in red states, Republicans can be vulnerable.

Speaking in a wine bar in Ashland, a suburb wedged roughly halfway between Omaha and Lincoln, Nebraska’s two big cities, Mr Osborn jokes that he is a transplant to the state—he moved to Omaha aged seven, when his father took a job on the railways. He met his wife at high school there, and on graduating, joined the navy. He later served in the Nebraska National Guard on a tank crew, before becoming a mechanic at the Kellogg cereal factory in Omaha, and getting involved in trade unionism. On his first day, he says, an “old Polish guy” told him to join the union. By 2021 he was the local union president, and led the Omaha leg of a bitter 77-day strike at all Kellogg’s plants. After that, in his telling, he was fired—and so ended up running for office.

At the age of 49, Mr Osborn is the picture of a white working-class union man. He dresses almost exclusively in plaid shirts and jeans (claiming not even to own a suit), usually with a naval baseball cap. When he speaks, he sometimes trips over his words—referring at one point to a “Mark Zuckerburger”. Yet there are hints of metropolitanism too. His daughter is a professional dancer in Hollywood. And despite his folksy charm he is unusually willing to talk about policy in detail. One proposal is to raise the cap on Social Security contributions so that workers with high incomes pay more.

Mr Osborn has maintained a studious silence as to where he would sit in the Senate. He claims to have been a registered independent his whole life, and will not say how he will vote in the presidential election. Ms Fischer’s spokesman argues however that he is a “liberal Democrat in disguise”. Her campaign has pointed to complimentary remarks Mr Osborn once made about Bernie Sanders (he praised the socialist senator from Vermont for raising money for his strike effort at Kellogg).

Mr Osborn’s rhetoric has Bernie-ish overtones. “This is a government for the 1% and the corporations,” he said at his event in Ashland. Yet, like many Donald Trump-supporting union members, he has some conservative stances. “There’s a lot of people we don’t want here that shouldn’t be here,” he says of illegal immigration. He argues that the border crisis is in fact engineered by Republicans in Congress: “Senator Fischer’s four big donors are meat packers in this state, who benefit from a wide-open border of undocumented workers that they can choose to exploit for next to nothing.” He also stresses that, despite supporting the restoration of Roe v Wade, he is a Catholic and personally opposed to abortion.

Can it work? Nebraska is now one of America’s reddest states. But it was not always so. The state had a Democratic senator until 2013. Mr Osborn’s advisers like to point out that it was home to William Jennings Bryan, a populist three-time Democratic candidate for president in the late 19th and early 20th centuries. Like Jennings Bryan, they argue that the Republican Party represents big-business interests. And in Ms Fischer, he has an ideal opponent. She is far from populist, and is much closer to Mitch McConnell, the Republican Senate minority leader, than she is to Mr Trump. At an event for the local Republican party in Norfolk, a small town in north-eastern Nebraska, she rejected a suggestion from one member that Republicans should have been more disruptive in Congress, defending the Senate’s rules and traditions.

If Mr Osborn has a chance, it is because it is the Democratic Party itself, not Democratic messages, that have fallen out of favour, so an outsider taking on the system can win. Even if he fails—still the most likely outcome—his campaign has sent a message that the sorts of working-class voters who have flocked to Mr Trump are not yet entirely sold on his party. The next election cycle may have a few more Dan Osborns. Perhaps they will call themselves “the Mice”.

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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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DOGE attacks a bastion of Republican internationalism

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Elon Musk has joined a war of ideas under the guise of a budget fight

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In Texas, vaccine-choice activists are ascendant

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Amid a measles outbreak they are lobbying for more “medical freedom”

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