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The Supreme Court hints it will keep Donald Trump on the ballot

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WHEN THE SUPREME COURT decided Bush v Gore a generation ago, five justices in effect handed George W. Bush the presidency over Al Gore. The implications of Trump v Anderson, which the court heard on February 8th, could be similarly momentous. But this time the justices are wary of making a splash in a presidential election and of splitting their votes along ideological lines. By the end of the oral argument, a consensus seemed to have emerged: despite his role in the events of January 6th 2021, Colorado will very probably not be allowed to remove Mr Trump from its ballot, nor will the other 49 states in this year’s election.

The historic hearing marked the first time the Supreme Court had considered the meaning and reach of Section 3 of the 14th Amendment, a provision that bars officials from holding future public office if, after taking an oath supporting the constitution, they engage in “insurrection or rebellion”. When rioters stormed the Capitol trying to overturn the 2020 election, scholars pointed to this relic of the Reconstruction era—a tool originally designed to keep former Confederate leaders away from the levers of power. Voters and advocacy groups in at least 35 states emerged to contend that Donald Trump is a modern-day insurrectionist who should be disqualified from a second presidential term.

Legal efforts stalled in most states, but on December 19th the Colorado Supreme Court cited Section 3 in ruling Mr Trump ineligible to appear on the ballot for the state’s Republican primary on March 5th. Defending that decision at the federal Supreme Court, Jason Murray (representing a group of voters including Norma Anderson, a 91-year-old Republican) called January 6th a “violent assault” that was “incited by a sitting president of the United States”.

This was one of few moments in two hours of wrangling that recalled the mayhem that transpired across the street from the Supreme Court three years ago. The hearing was dominated by bloodless parsing of legal technicalities and worries about what would happen if the Colorado court’s ruling stood.

In his opening pitch, Jonathan Mitchell, Mr Trump’s lawyer, did not say a word about January 6th. He did not deny that the riot was an “insurrection” (though he did, half-heartedly, later on). At no point did he offer a defence of his client’s behaviour. Instead, he said Section 3 does not apply to Mr Trump because a “president is not ‘an officer of the United States’ as that term is used throughout the constitution”. (An officer, he later explained, is a “term of art” applying “only to those who are appointed, not to those who are elected”.) Mr Mitchell also cast doubt on a state’s power to remove a presidential candidate from the ballot based on Section 3. The second sentence of that provision permits Congress to lift the ban by a two-thirds vote. So by prematurely removing a candidate from the ballot, a state is “accelerating the deadline to meet a constitutionally imposed qualification” and disenfranchising “potentially tens of millions of Americans”.

Justices from right to left voiced scepticism about entrusting states with the power to disqualify presidential aspirants. Justice Brett Kavanaugh made much of Griffin’s case, an 1869 circuit-court ruling that said Section 3 could not be applied unless Congress passed a law permitting the removal of insurrectionists. Justices Samuel Alito and Clarence Thomas noted that states have used Section 3 to disqualify candidates only for state, not federal, offices. The chief justice, John Roberts, looked to the purpose of the 14th Amendment: isn’t its “whole point”, he asked Mr Murray, ”to restrict state power”? Empowering states to disqualify candidates at will seems to be “at war” with that aim. If states cynically nix candidates from their ballots, elections could end up turning on just a “handful of states”. That, he warned, would be “a pretty daunting consequence”.

It was not only the six-justice conservative majority who were uncomfortable with Colorado’s erasing Mr Trump from the ballot. Justice Ketanji Brown Jackson eyed the list of offices Section 3 prohibits oath-breakers from holding and noticed that “president” and “vice-president” are not among them. Justice Elena Kagan amplified Chief Justice Roberts’s worries about the disarray that would follow from 50 states each having a say on who qualifies for the ballot. “Why should a single state”, she asked Mr Murray (who clerked for her a decade ago), “have the ability to make this determination not only for their own citizens but for the rest of the nation?”

Justice Sonia Sotomayor looks to be the only possible dissenting voice on a bench unwilling to approve a new regime of states making independent judgments about candidates’ fitness under Section 3. With primary season under way, the court is probably keen to allay confusion. The answer could come uncharacteristically swiftly for a court that normally takes months to rule: the justices are next scheduled to appear in the courtroom on February 16th.

Stay on top of American politics with The US in brief, our daily newsletter with fast analysis of the most important electoral stories, and Checks and Balance, a weekly note from our Lexington columnist that examines the state of American democracy and the issues that matter to voters.

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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