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SnapshotsJan 14, 2021 | 16:39 GMT
Italy’s former prime minister and current leader of the Italy Alive party, Matteo Renzi (center), holds a press conference with outgoing ministers Elena Bonetti (left) and Teresa Bellanova (right) on Jan. 13, 2021.
Italy’s Government Is in Crisis. What’s Next?
Italy is in a political crisis after a junior member of Prime Minister Giuseppe Conte’s coalition exited the government, effectively leaving it without a majority in Parliament. The most disruptive (but least likely) scenario would be an early general election, which would undermine Rome’s efforts to handle the health and economic repercussions of the COVID-19 pandemic. On Jan. 13,  the small Italy Alive political party withdrew its ministers from Conte’s cabinet to protest his handling of the COVID-19 pandemic. This has left the senior members of the coalition -- the anti-establishment Five Star Movement and the center-left Democratic Party -- without a majority in Parliament. 
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SnapshotsJan 13, 2021 | 18:46 GMT
German journalist Tanja Samrotzki (right) moderates a panel with the candidates vying for the leadership post of Chancellor Angela Merkel’s Christian Democratic Union (CDU) party -- Friedrich Merz, Norbert Roettgen and Armin Laschet (from left to right) -- on Dec. 14, 2020, in Berlin, Germany.
Germany: What to Expect as Merkel’s Party Elects a New Leader
German Chancellor Angela Merkel’s conservative Christian Democratic Union (CDU) party will elect a new leader on Jan. 15-16. The ideological orientation of the new CDU leader could influence Germany’s domestic politics, as well as its relations with the European Union. The CDU is Germany’s most popular party and its leader stands a strong chance of becoming the country’s next chancellor after the Sept. 26 general election. In 2018, Merkel resigned as CDU leader and announced she would not seek another term as chancellor in 2021. During a virtual congress, the CDU’s 1,001 party delegates will elect a new leader. According to CDU tradition, the next party leader should also be the candidate for chancellor, though some members of the party are questioning this principle. 
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AssessmentsJan 12, 2021 | 21:55 GMT
Destroyed homes are seen in the village of Aldeia da Paz outside Macomia, Mozambique, after a militant attack on Aug. 24, 2019.
In Mozambique, Militants Will Gain Ground Until They Threaten the Government
Militants in Mozambique will continue to gain ground near the liquified natural gas (LNG) park under construction in the country’s north until the government deems the economic and political threat large enough to warrant foreign support. On Jan. 1, the French supermajor Total evacuated some of its personnel from its $20 billion LNG project being built on the Afungi Peninsula in Mozambique’s northernmost province of Cabo Delgado, effectively freezing work at the site. The decision came after the Islamic State affiliate in Mozambique, Ahlu Sunnah Wa-Jama (ASWJ) -- which is also a part of Islamic State’s Central African Province -- attacked a village less than one kilometer from the facility’s airstrip.
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AssessmentsJan 6, 2021 | 19:01 GMT
Peruvians wearing masks to protect themselves from COVID-19 wait outside a bank to collect government aid bonuses in Iquitos, Peru, on June 15, 2020.
Peru's Economy Gets a Wake-Up Call. Will Its Leaders Listen?
Peru is a rare emerging market country that has time to address long-term issues without putting immediate growth at risk -- but only if it takes advantage of that grace period to act. Peru’s primary economic headwinds include reduced growth momentum, with concerns about the country’s long-term financial prospects and political stalemates delaying crucial economic reforms. Such headwinds could hamper fiscal deficit reduction if Peru cannot legislate tax increases or resist spending pressure. In addition, global GDP growth will determine the demand for commodities and metals prices.
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SnapshotsJan 5, 2021 | 19:34 GMT
A sign advises people to follow COVID-19 restrictions on Jan. 5, 2021, in Falmouth, the United Kingdom. In a televised address on Jan. 4, U.K. Prime Minister Boris Johnson announced the country was entering its third lockdown since the onset of the pandemic in early 2020.
The Next Wave of COVID-19 Lockdowns Emerges in Europe
The United Kingdom’s decision to tighten its COVID-19 lockdown measures and introduce a new relief package for businesses is a preview of similar decisions that governments in continental Europe will introduce in the coming days. The lockdown measures will result in low, or even negative, economic growth in Europe in the first quarter of 2021, which will worsen governments’ fiscal deficit and sovereign debt levels. On Jan. 4, U.K. Prime Minister Boris Johnson and Scotland’s First Minister Nicola Sturgeon announced stricter social distancing measures for England and Scotland, respectively, to cope with the rising number of COVID-19 infections. Then, on Jan. 5, the U.K. government announced a 4.6 billion pound ($6.2 billion) aid package for companies hardest hit by the tighter lockdown measures across the country. 
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Annual ForecastsJan 3, 2021 | 21:37 GMT
An image of the COVID-19 vaccine, President-elect Joe Biden, the Huawei logo, and a stock market sign
2021 Annual Forecast
The geopolitical environment in 2021 will be shaped by two global developments: the trajectory of the COVID-19 pandemic and the efforts by U.S. President-elect Joe Biden's administration to restore collaborative relationships across the globe.
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AssessmentsDec 30, 2020 | 21:25 GMT
A poster showing six Russian intelligence officers charged with carrying out global cyberattacks is displayed before a news conference at the U.S. Department of Justice on Oct. 19, 2020, in Washington D.C.
SolarWinds Will Spur Biden Into Action on State-Backed Cyber Threats
The recent SolarWinds hack will prompt U.S. President-elect Joe Biden to increase Washington’s cyber resources and, potentially, its offensive capabilities in order to better deter against future cyberattacks by Russia, as well as other state actors. This intensified focus on state-backed cyber threats will likely include more U.S. investments into cyber defense over the next four years. The Biden White House will also continue to deploy sanctions against assailant countries, though such sanctions will likely be narrow in scope for fear of stoking aggressive retaliatory measures against U.S. entities and causing significant economic damage to countries like Russia and China that are essential to the global economy. 
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SnapshotsDec 29, 2020 | 20:18 GMT
Israeli Prime Minister Benjamin Netanyahu (right) and Alternate Prime Minister and Defence Minister Benny Gantz (left) attend a cabinet meeting in the Knesset on May 24, 2020.
What Another Israeli Election Means for Netanyahu and Normalization
Israel’s new election season will empower Israeli nationalists and foreign policy hawks, straining relationships with its U.S. and European allies and potentially setting back normalization efforts with states such as Sudan, Morocco, Oman and Saudi Arabia. After failing to pass a national budget, Israel’s Knesset dissolved itself on Dec. 22, triggering yet another early ballot. Disputes over the length of the budget timeline helped catalyze long-standing tensions between the Israeli unity government’s primary political anchors, with Blue and White party head Benny Gantz accusing Prime Minister Benjamin Netanyahu and his right-wing Likud party of trying to use the national budget to better position themself for future elections. Israel’s fourth general election in less than two years is now set for March 23. 
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GuidanceDec 24, 2020 | 16:58 GMT
The EU and British flags in front of the European Commission headquarters on Dec. 9, 2020, in Brussels.
The EU and U.K. Reach a Trade Deal, Ending Brexit. What Now?
Five years of economic uncertainty for households and companies that began with the Brexit referendum of 2016 have come to an end. The European Union and the United Kingdom have reached a free trade agreement that covers most goods, but only a limited number of services. This means that manufacturers in the European Union and the United Kingdom will be able to continue trading with each other from Jan. 1, 2021, without any quotas or tariffs, and the heavily disruptive scenario of trade under World Trade Organization tariffs has been avoided. On the contrary, the services sector (which represents around 80% of the British economy) will have limited access to the EU single market.
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