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Georgia’s black Republicans have a battle plan for 2024

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On the last Sunday of Black History Month there was real energy in Atlanta’s Ebenezer Baptist Church. Between gospel songs that made even your agnostic correspondent feel something spiritual, a trio of children reminded the congregation of the church’s political prominence. Martin Luther King junior was baptised there and preached there until he died. Over the years church members became lawmakers, and today a little girl told parishioners, with a grin, that Georgia’s first black senator is their pastor. Sitting behind her Raphael Warnock, one of two Peach State Democrats who helped flip control of the Senate in early 2021, reached out for a fist-bump as cheers erupted in the pews.

The night before a very different set of black Georgians had come together. In a converted downtown warehouse the Georgia Black Republican Council held its first-ever masquerade ball. Ranchers and representatives took to the stage to give Trumpian speeches. Women dressed in red sequinned gowns and fur stoles nibbled at fried chicken while chatting about their plans to get friends to break with tradition and vote Republican in November.

At roughly 30%, Georgia has the highest share of black voters of any battleground state. Over the past two decades an influx of black people into metro-Atlanta made Georgia the only Deep South state that Democrats can compete in. In 2020 Joe Biden became the first Democratic presidential candidate to win there since 1992. But with a Biden-Trump rematch looming, Democrats fear they are losing ground with their most loyal voting bloc.

In the decade to 2023 the share of black men who identified as Democrats fell from 80% to 62% nationwide. For women it dropped from 84% to 74%. Black youngsters are particularly unenthused about Mr Biden. Republicans in Georgia see an opportunity. The governor’s race in 2022 was the first time that both candidates actively chased black voters. Stacey Abrams spent $100m courting them while Brian Kemp, who ultimately beat her, deployed black surrogates, campaigned at black-owned businesses and stressed his record of appointing black judges. In December a group of Democratic strategists published a report warning that even the slightest drop in black turnout this year could hand Donald Trump a victory in the state.

Georgia’s black Republicans think three issues can sway their brethren: education, crime and immigration. Mesha Mainor, a state representative who left the Democratic Party in July to become a Republican, says that black pupils suffer disproportionately from failing public schools. Last year Atlanta’s white high-school graduation rate was 12 percentage points above the black one. On March 20th the state Senate passed a bill to give families $6,500 vouchers for private-school tuition. She thinks Republicans’ crusade for school choice should help them pick up voters of all political stripes.

Angry about the border

On crime black communities tend not to favour liberal policies—and Georgia Republicans plan to capitalise on that. For the past year Atlanta has been divided over a plan to build a $90m police-training facility dubbed “cop city” by protesters. Notably, a black councilwoman proposed it, the city’s black mayor has endorsed it and an Emory University survey from last year found that a minority of black residents opposed it. Jalen Johnson, a deputy sheriff and city commissioner in Albany, Georgia, says he can’t remember a single time he has delivered a death notification to a white family. Republican tough-on-crime policies, he says, resonate more when it’s always “black boys getting shot”. He notes that during Mr Trump’s presidency there was also real progress on prison reform.

Days after a Venezuelan immigrant was arrested for killing a nursing student in Athens in late February, Kelly Loeffler, who lost her Senate seat to Mr Warnock three years ago, convened a meeting at a renowned Atlanta soul-food restaurant. Over dinner black panellists spoke about how resentful they feel about Mr Biden’s policies towards people who cross the southern border illegally. Black Georgians have watched loved ones go to jail for dealing marijuana, one said, while migrants who break the law by sneaking into America walk free and are even rewarded with government and non-profit aid. They hope to drum up that same anger in black Democrats in this cycle.

The swing state’s black electorate still leans overwhelmingly left. But the young black Georgians who have converted to the conservative cause are bent on evangelising. A band of college women at the masquerade ball said they will no longer tolerate candidates taking their votes for granted. For some it was Ms Abrams, a prominent black Democrat who ran for Georgia’s governor twice, who taught them that they, too, have a voice in politics. When they thought about it, they realised they were being played by their party.

“A lot of times it started with a brother,” says Michaelah Montgomery, a 25-year-old who grew up during Barack Obama’s presidency and now runs the Atlanta chapter of an organisation called BLEXIT. “We all trusted him because he looked like us and spoke at our church.” But that is no longer enough. If there is one thing that she and the Democratic strategists worried about losing Georgia can agree on, it is that Mr Biden will have to spend bigger and work harder to get the black vote this year. The days of the token fish fry are over.

Economics

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.

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