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War is not the only reason some Muslims are ditching the Democrats

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AS PRESS conferences go, the one held at the Arab American Chamber of Commerce building in Dearborn, a suburb of Detroit, on October 27th, was uncomfortable. On one side of a boardroom table, opposite a crowd of cameras and microphones, sat around a dozen men and women who are influential in Arab-American circles. Taking turns to speak, each of them explained how they were directly affected by war in the Middle East; how they felt disappointed and betrayed by President Joe Biden; and how despite it all, they would still be voting for Kamala Harris.

“I’ve heard people in my community say they want to punish Democrats for this war,” said James Zogby, the second speaker and the founder of the Arab American Institute. “They’re not going to punish Democrats. They’re going to punish immigrants. They’re going to punish innocent people.” He finished with a plea: “Don’t punish the country, the world, your children, your grandchildren, because you’re angry.”

As they spoke, a small crowd holding up Palestinian flags was gathering outside, suggesting that they would be doing exactly that: “There are traitors inside,” went the chant. “Endorsing our genocide.” Later they called the attendees “Zionist collaborators”. According to Jenin Yaseen, one of the protesters, the only difference between Ms Harris and Donald Trump is the speed at which each would accept the murder of all Palestinians. Both are appalling, she said, but she thought Mr Trump was at least honest in his contempt for the Palestinian cause.

Michigan is among the closest of swing states, with polls suggesting Ms Harris has the slenderest of leads: our model puts her just 0.4 percentage points ahead. And according to the census bureau, 310,000 people claim Middle Eastern or North African origins in the state, or about 3% of the total. Winning over Arab voters could deliver Mr Trump the election. On October 26th, at a rally in Novi, a suburb of Detroit, the former president appeared on stage with 21 Muslim and Arab leaders (all men), after being endorsed by the mayors of Dearborn Heights, a heavily Arab suburb next to Dearborn proper, and of Hamtramck, an enclave of Detroit with a fully Muslim city council. Mr Trump, one imam declared, will deliver “peace”.

This seems rather implausible. According to Lindsay Graham, a Republican senator, Mr Trump recently told Binyamin Netanyahu, the prime minister of Israel, that he has “awe” for Israeli military operations and backs more of them. The former president has also called for Mr Netanyahu to “finish the job”. But that may not stop some Arab-Americans in Michigan from voting for him.

Rania Batrice, a Palestinian-American Democratic operative who worked for Bernie Sanders in 2016, and who is reluctantly backing Ms Harris, says that those supporting Mr Trump know his promises of peace are “a big fat lie”. But she worries they don’t care, because they are simply too angry with Mr Biden and Ms Harris. Many were initially warmer towards her, but are disappointed the vice-president has not broken rhetorically with Mr Biden since becoming the nominee.

There is some reason to think that a few Muslims would be drifting to Mr Trump even without the war, and that the bloodshed in Gaza and Lebanon simply provides an excuse. On a call organised by the Trump campaign on October 21st, Amer Ghalib, the mayor of Hamtramck, barely mentioned the war in Gaza at all. An imam present suggested that if Ms Harris wins, “the boys will turn to girls, and the girls will turn to a boy.” Melissa Gilchrist, a resident of Hamtramck, says that she thinks Mr Ghalib’s endorsement of Mr Trump is more about local politics. A year ago, she was at the front of a protest against Mr Ghalib after he removed the city’s gay-rights rainbow flag from outside City Hall. The mayor and his clique “are much more conservative on social things than the Democratic Party”, she says. Endorsing Mr Trump is a jab at his critics locally.

A poll conducted for the Arab American Institute earlier this month found Arab-Americans divided equally between the two candidates. Muslim and Arab voters may also just stay away from the polls, or else turn out for a third-party candidate. A campaign encouraging them to do just that, called “Abandon Harris”, has endorsed Jill Stein, the Green Party candidate. Hassan Abdel Salam, its founder, says that his hope is that Ms Harris loses the election by a narrow margin in Michigan, and then that Democrats react by insisting their next candidate should adopt a more forceful approach to Israel. “We want to be written in history, for our great great grandchildren, we want to be remembered forever,” he says. It is a thought. 

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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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