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On a commercial stretch of Queens, New York, across from a hair-braiding salon and next to a McDonald’s, two security guards mark the entrance to the Jamaica Sexual Health Clinic. For years this has been the neighbourhood’s go-to place for STI testing and HIV treatment. Joaquin Aracena, from the Bureau of Public Health Clinics, proudly shows its newest addition: the reproductive-health wing. With freshly painted white walls and pastel-green doors, it is distinctly less institutional-looking than the rest of the clinic.
“Once they did [away with] Roe v Wade I was able to get this space,” he says. The clinic now offers walk-in medication abortions free to all. Word is clearly spreading. Last year it provided just over 700 abortions; in January it was 100, and this morning the two nurse practitioners have already sent four women home with a non-transparent bag containing the pills they need to terminate their pregnancies.
This is one of the more unexpected results of the Supreme Court’s decision in 2022 to overturn Roe, a ruling that returned the issue of abortion to states and triggered bans. That gave the city’s government new energy to take a more active role in co-ordinating access to abortion, says the city’s health commissioner, Ashwin Vasan. This included putting up billboards in Arizona and Texas and opening clinics in underserved pockets of the city. Less than nine months after Dobbs v Jackson, the ruling that overturned Roe, the Jamaica clinic’s abortion service was up and running.
Many hurdles—practical, financial, social—can stand in a woman’s way, even where abortion is legal. One consequence of Dobbs is improved access in states with a supportive approach to abortion.
Map: The Economist
New data from the Guttmacher Institute, a pro-abortion-rights research group, estimate that over 1m abortions were performed in America in 2023—a rise of 10% compared with 2020 and the highest number in over a decade. This is astonishing, given that the procedure is now banned in 14 states and has become restricted in several more. States bordering those with bans had the steepest rises: up by 72% in Illinois since 2020, 76% in Virginia and 257% in New Mexico.
Last year more than 160,000 women—over 400 a day—crossed state borders to terminate pregnancies, versus 81,100 in 2020 (albeit a covid-19 year). More surprising is the growth among residents of abortion-supporting states. In California locals had an estimated 21,470 more abortions in 2023 than in 2020 (accounting for 88% of the state’s increase) and in New York they had 20,460 more (97%). Overall, in states without bans, over half of the rise was the result of locals having more abortions.
Efforts to improve access in such states may help explain this growth. Several states have reduced out-of-pocket spending for patients. Illinois, New Mexico and New York have increased their Medicaid reimbursement rates for first- and second-trimester abortion procedures by more than 200%, according to forthcoming analysis by KFF, a health-research group. In ten states health insurers are now required to cover abortion, up from six before Dobbs.
Map: The Economist
Nothing has helped expand access as much as abortion pills, which now account for 63% of abortions in America, up from 45% in 2019 (see chart). Medication abortions are cheaper than procedural ones, and easier for clinics to provide and (especially in rural areas) for patients to receive. They are effective in the first trimester, when 94% of abortions happen. Telehealth experiments during the pandemic helped fuel the expansion, as did a loosening of regulations on their use and distribution. Next week the Supreme Court will consider whether the rules should be tightened again.
Whereas in 2020 only 7% of providers offered abortions via telemedicine, by 2022 that had increased to 31%. Mai Fleming from Hey Jane, a virtual-only abortion provider, says she can offer medication abortions at “a fraction” of the cost of bricks-and-mortar clinics. She has seen particularly large increases in orders from states that border restrictive states, such as Colorado, Illinois and New Mexico.
Abortion havens have also solidified legal protections, both for patients (eg, data privacy) and providers (eg, malpractice insurance). Some have amended state constitutions to include a right to abortion. Six states now have telemedicine shield laws that protect licensed practitioners from prosecution if they prescribe and send pills to patients in states that ban abortion.
Alternative explanations for the nationwide rise in abortions, beyond the spread of pills and efforts to lower barriers, do not seem to hold water. It does not, for example, appear to stem from a spike in unplanned pregnancies, which—a short bump during the covid pandemic excepted—show little sign of change since Dobbs.
It would be wrong to conclude that all is fine in post-Roe America. Abortion pills may be a godsend for early unplanned pregnancies, but for women in states with bans who need an abortion later—often due to fetal abnormalities detected at the 20-week scan—getting an abortion is harder than it has been for decades.■
Correction (March 19th 2024): An earlier version of this article misstated the number of women who crossed state borders to terminate pregnancies in 2020. Sorry.
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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.
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.