Chancellor Palpatine is given emergency dictatorial powers by the Galactic Senate to build an army to fight the Republic's enemies. Before these powers were established, he could not legally do so. This army will eventually be used to wipe out the Jedi.
Anakin and Padme are having a picnic when they start discussing systems of government. Anakin thinks that occasionally, politicians should be made to agree, whereas Padme values democracy above progress.