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Abortion-pill foes get a chilly reception at the Supreme Court

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ANTI-ABORTION ACTIVISTS were thrilled when Donald Trump won the presidency in 2016. Mr Trump had promised to appoint justices who would “automatically” overturn Roe v Wade, the 1973 case that protected reproductive rights. Three appointments later, the Supreme Court did just that in Dobbs v Jackson Women’s Health Organisation. But two years on, an oral argument on March 26th concerning mifepristone—a medication used in 63% of abortions in America—bodes ill for those hoping the court will help them keep limiting access to abortion care. At least for now.

Food and Drug Administration v Alliance for Hippocratic Medicine concerns a challenge to mifepristone by a group of doctors who oppose abortion. They persuaded a lower-court judge to de-authorise the FDA’s approval of the drug in 2000 despite a safety record comparable to Tylenol (paracetamol) and penicillin. The Fifth Circuit Court of Appeals somewhat softened that slap in the agency’s face last August. But it blocked the FDA’s moves in 2016 and 2021 allowing mifepristone to be used later in pregnancy (through ten weeks) and to be sent through the mail with a remote prescription.

Erin Hawley, representing the plaintiffs, defended the pill restrictions in her first argument at the Supreme Court. With her husband, Senator Josh Hawley, watching from the public gallery, she told the justices that the FDA’s policy on mifepristone left her clients facing a “Hobson’s choice”. Forcing doctors either to stand by their beliefs or care for a woman who took abortion pills and wound up in the emergency room, Ms Hawley said, is “intolerable”. Yet she faced deeply sceptical questioning from justices across the ideological spectrum as to whether her clients had suffered a concrete injury—a prerequisite for bringing a lawsuit in the first place.

Colloquy about “standing”, or a lack thereof, consumed perhaps three-quarters of the 90-minute hearing. Justices Elena Kagan and Amy Coney Barrett teamed up to demonstrate that even Ms Hawley’s two exemplars—Dr Christina Francis and Dr Ingrid Skop—had not suffered a concrete injury. Dr Francis may have had a patient who needed surgical attention after a complication from taking mifepristone, but she never raised an objection to treating her, Justice Kagan pointed out. And as Justice Barrett noted, it was actually her partner who performed the procedure, not Dr Francis herself: “I don’t read either Skop or Francis” as having “ever participated” in ending the life of a fetus or embryo.

The Alliance offered an alternative account of why the Alliance may have the right to sue—a theory known as “associational standing”. This is when an organisation brings a lawsuit based on harm to the organisation itself or to its members. Justice Clarence Thomas noted that it may be too “easy to manufacture” an injury rooted in an organisation’s bare opposition to a policy if all it has to show is “diverted time and resources” associated with bringing the lawsuit. Meanwhile, Justice Samuel Alito suggested that the court has been flexible with standing in past cases and seemed exasperated by the possibility that no one could come up with a plausible plaintiff. “Is there anybody who can sue and get a judicial ruling on whether what FDA did was lawful?” he asked. “Shouldn’t somebody be able to challenge that in court?” That’s quite unlikely, replied Elizabeth Prelogar, the solicitor-general who ably defended the FDA’s moves. But in any case, the plaintiffs in court don’t “come within a hundred miles” of the Supreme Court’s long-standing standards.

Several justices explored Ms Prelogar’s claim that federal law provides “conscience protections” that “would guard against the injury the doctors face”. Justices Barrett and Brett Kavanaugh seemed satisfied with her assurance that the government would not force a doctor with an objection to ending fetal life to participate in an abortion. Justice Ketanji Brown Jackson added that the “obvious common-sense remedy” is to give individual doctors “an exemption” (which they already have) rather than, as she said to Ms Hawley, to “entertain your argument that no one else…in America should have this drug in order to protect your clients”.

Justice Neil Gorsuch jumped on this suggestion. Single-judge district courts, he lamented, too often refashion themselves as “a nationwide legislative assembly” when blocking actions of the federal government. The judiciary’s proper role, he said, is to “provide a remedy sufficient to address the plaintiff’s asserted injuries and go no further”.

Two justices seem ready to go significantly further. Justices Alito and Thomas invoked the Comstock Act, a law from 1873 that bans sending, among other “lewd” things, abortion medications and materials through the post. In 2022 the White House’s Office of Legal Counsel said that this 150-year-old law only prohibits posting such materials to people who will use them unlawfully. But Justice Alito was incredulous that the FDA did not at least mention the law when regulating mifepristone. And Justice Thomas told Jessica Ellsworth, the lawyer for Danco Laboratories (which markets the drug as Mifeprex) that it “specifically covers drugs such as yours”.

If three more justices who were mum on this 19th-century law have a similar view, a future administration could succeed in banning the posting of abortion medication. But for now, it seems, the nearly 650,000 American women who end their pregnancies each year with abortion pills will not see their access curtailed.

Visitors outside the Supreme Court on March 26th saw just how convenient mifepristone can be. Foot-high “Roe-bots” whizzed around the plaza ready to distribute abortion pills by prescription. Controlled by doctors in Massachusetts, New York and Washington, the bots can do a virtual consultation with a remote provider and dispense the medication on demand. A volunteer with Aid Access, the charity which organised the demonstration, noted the Roe-bots were perfectly legal. “It’s all very by the book,” she said. 

Economics

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.

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