Home » Biden announces final settlement in debt dispute with Republicans

Biden announces final settlement in debt dispute with Republicans

by admin
Biden announces final settlement in debt dispute with Republicans
Abroad “Good news”

Biden announces final settlement in debt dispute

US President Joe Biden explains the compromise with the Republicans in the dispute over the debt ceiling

Considers the default averted: US President Joe Biden is satisfied

Quelle: AP/Manuel Balce Ceneta

After weeks of tough negotiations on the debt ceiling, the US government and opposition have finally reached an agreement. President Joe Biden speaks of a “really important step forward”. But Congress still has to approve it.

US President Joe Biden has announced a final agreement in the dispute between the government and opposition over raising the country’s debt ceiling. “Good news,” he said Sunday night at the White House: “The agreement prevents the worst possible crisis, a default, for the first time in our nation’s history.”

The threat of a “catastrophic default” is off the table. He appealed to both parties in Congress to approve the plan quickly. “The Speaker of the House and I have made it clear from the start that the only way forward is bipartisan agreement,” he said.

Biden had negotiated again with the Republican Speaker of the House of Representatives, Kevin McCarthy, after both had already announced a “basic agreement” on Saturday evening (local time). Until the agreement has passed Congress, there is still a risk of default on June 5th. That’s the ultimate deadline that Treasury Secretary Janet Yellen recently set for reaching the debt ceiling.

House Speaker Kevin McCarthy must convince his Republican party friends to agree with Biden

House Speaker Kevin McCarthy must convince his Republican party friends to agree with Biden

Quelle: AP/J. Scott Applewhite

The corresponding draft law was published on Sunday evening shortly after Biden’s comments in the White House. It is 99 pages long and calls for spending cuts along with increasing the country’s borrowing capacity. It can now be examined by MPs from both parties before it is expected to be voted on in the House of Representatives on Wednesday.

See also  Inpatient care: Patients stay away

With a view to the upcoming vote in the Senate, Republican Senate Minority Leader Mitch McConnell has already called on his colleagues to approve the bill. They must “act quickly and adopt this agreement without undue delay,” he said.

also read

US President Joe Biden spoke to reporters at the White House on Friday

The negotiators from Democrats and Republicans worked hard on the draft text on Sunday. The agreement is based on compromises that are likely to have a hard time on both the right-wing fringes of the Republican party and the left wing of the Democrats. Republicans sold the deal as a success for the party. However, it fell partially short of the level of spending cuts they were aiming for.

McCarthy: Democrats ‘got nothing’

McCarthy told reporters that not everyone got what they wanted in the deal. Privately, he told Republicans in a switching conference that the Democrats “got nothing.”

The coming days will decide whether the country succeeds, as so often in the past, in a impending payment default averted at the last minute – or whether, if the project fails, a crisis threatens not only the USA but the global economy.

also read

The Capitol in Washington: Democrats and Republicans must pull together to avoid a default

Analysts have warned that such a situation could result in an international financial crisis, destroying millions of jobs and soaring the cost of credit and unemployment. The market for US Treasury bonds is likely to collapse.

Biden said he’s confident the plan will make it onto his desk to go into effect after Congress approves it with his signature. McCarthy was also optimistic.

See also  Fiera Milano, Tuttofood doubles visitors over 150 thousand

You may also like

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy