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The election in Georgia could be as pivotal as it was four years ago

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In 2020 no other state produced as much election drama as Georgia. In the end it gave Democrats slender victories that helped them win both the White House and a majority in the Senate, though not before Donald Trump, unsuccessfully, implored Georgia’s Republican secretary of state, Brad Raffensperger, to “find 11,780 votes”, the number needed to overturn the swing state’s results in his favour. In 2024 Georgia will again find itself taking centre stage—for three reasons.

The first is Mr Trump. After a big win in Iowa, the former president looks as politically robust as ever. Though his legal woes have not alienated Republican voters (rather the reverse), they could yet cause him trouble, not least in Georgia. Last August a grand jury indicted him for running a criminal ring that conspired to overturn the state’s 2020 election. Unlike in the federal cases pending in Washington and Florida, if re-elected Mr Trump could not pardon himself from the Georgia charges (though, according to long-standing policy, he would have immunity while in the White House). Nor could Brian Kemp, the state’s Republican governor, nix them.

But the case has taken an unexpected turn. On January 8th Fani Willis, the district attorney prosecuting Mr Trump, was accused by one of his co-defendants of having a fling with a special prosecutor she hired. Though the salacious claim is unlikely to disqualify her from litigation, it opens her to allegations of corruption (Ms Willis denies acting improperly in hiring him). Her foes are calling for her to go. That plot twist is unlikely to be the last.

Second, there is the matter of election security. Though Georgia is not home to the country’s loudest election-deniers—its Republican statewide politicians have staunchly asserted that its contests have been fair—fierce debates over election safety are playing out in the courts. A case that has been dragging on for over six years is reaching its end. An Obama-appointed judge will decide in the coming weeks if Georgia must scrap its electronic voting machines. Left-wing plaintiffs argue that the touchscreen ballot-markers are eminently hackable and make paper audits impossible. They point to a breach in Coffee County, where Trump allies copied election software from a rural polling station in January 2021, as proof that bad actors have all they need to do damage in 2024.

Good on paper

To the dismay of the cyber-security professors making the case for a switch to hand-marked paper ballots, Georgia’s most infamous conspiracy-theorists have taken their side. During opening statements the courtroom was packed with Trump apostles keen to tell your correspondent about the counterfeit ballots that flipped elections past. The office of Mr Raffensperger, the defendant, says it refuses to negotiate with election-deniers of left or right, noting that the trial is sowing unsubstantiated distrust of the state’s elections.

On 11 criteria for “fair, accessible, secure and transparent” elections—including, for example, whether a state has early voting and conducts audits—the Bipartisan Policy Centre, a think-tank based in Washington, DC, ranks Georgia best in the country (tied with Colorado). Even some who do not see it that way reckon it is too late to change the voting system before November. “It would cause mayhem,” says Cianti Stewart-Reid, the head of Fair Fight Action, a voting group started by Stacey Abrams, a Democrat who ran for governor in 2018. The case plants the seeds for fights over the validity of the results in November.

Third, voting rights: Georgia’s increasingly diverse electorate makes the state a laboratory for the demographic changes expected across America—and the fights over voter access that come with them. That has catalysed a movement to get unlikely voters registered and to persuade national campaigns to invest in Georgia. The Abrams machine spent $400m doing so in the decade to 2022. But since 2013, when the Supreme Court struck down the pre-clearance regime that gave the federal government authority to monitor election rules in places with historical injustices, Georgia’s Republicans have also been tightening voting laws.

After Joe Biden won Georgia in 2020 the legislature passed SB202, a bill that, among other things, made it illegal to pass out water and snacks to those queuing to vote and allowed individual citizens to challenge the voter registrations of neighbours they suspect are unlawfully registered. Though the law has had a more muted effect than some expected, it has forced Democrats into new battles. According to ProPublica, an investigative outlet, in two years nearly 100,000 registrations were challenged (oddly, 89,000 challenges were filed by just six people). Those who fail to respond to the notices can get kicked off the rolls. In early January Democrats lost in court to True the Vote, a conservative group leading the challenge crusade. Following the decision, its leaders announced the launch of new automated mass-challenge software.

All this amounts to the most dynamic political tug-of-war outside the capital. “Without a doubt there was some sore-loser politics involved, but SB202 addressed real issues as well,” says a Republican who took part in its deliberations. The handful of Georgia judges making decisions on the Trump trial, election security and voting-rights cases have the hard task of distinguishing between political high-jinks and good-faith arguments. Their rulings will matter for all Americans. 

Stay on top of American politics with Checks and Balance, our weekly subscriber-only newsletter examining the state of American democracy, and read other articles about the elections of 2024.

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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