A tentative deal to raise the US debt ceiling

A tentative deal to raise the US debt ceiling

Negotiators from the White House and the Republican majority in the House of Representatives reached an agreement Saturday night to raise the debt ceiling. It appears to ensure payment of US debts and avoid a financial crisis with potential international impact. The deal still needs to be ratified by the House and Senate.

President Joe Biden and Republican Party leader Kevin McCarthy issued separate statements on Saturday — and the coolness of both statements reflected irritation over the long negotiations. Biden “agrees in principle” In a written statement “Good news for Americans.” This, according to Biden, prevented the United States from repaying its creditors, “which would have led to an economic recession, a catastrophic pension fund and millions of lost jobs.”

Biden said a “range” of spending was agreed to, as Republicans wanted, but that “key programs for working people” would be left out. According to him, the most important priorities for him and the Democrats in Congress are also protected.

That was certainly not the message Speaker McCarthy conveyed His brief statement In front of the press. He noted only gains for the Republican Party. According to him, a “historic reduction in government spending” has been agreed. He also said that “there will be no new taxes”, “no new government schemes” and “government control will be limited”.

read more: America is flirting with a crisis of its own making that could drag down the entire global economy

A compromise

Biden called the deal “a compromise, which means not everyone gets what they want. That’s what happens when you govern responsibly. In doing so, he’s openly admitting that he’s abandoned his initial position. Biden has long refused to negotiate on raising the debt ceiling, which is necessary to meet already-incurred fiscal obligations.” .

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McCarthy underscored that “there’s still a lot of work to be done” before the bill goes to the House and Senate for a vote. On Sunday, he promised that the draft law would be ready for a vote on Wednesday. Monday is Memorial Day, a holiday in the US.

The US media has expressed concern over a two-year increase in the debt ceiling. On Friday, Treasury Secretary Yellen increased the pressure on the negotiations by announcing that, in her estimation, it would no longer be able to pay its debts without a deal as of June 5. Defense costs remain unaffected by the contract.

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