“According to economists, 8 million Americans could lose their jobs if our country fails to pay its Treasury bills. The consequences would be catastrophic across the country and around the world. Default is not an option.” The American president Joe Bidenengaged in the G7 meeting in Hiroshima, thus summarizes the worsening – in Washington – of the dispute with the Republicans over the debt.
Negotiations between the White House and the Republicans to raise the debt ceiling and avoid the default of the US from 1 June have in fact once again been interrupted. The speaker’s top Republican negotiators Kevin McCarthy They walked out of the brief meeting shortly after talks resumed on Friday evening stating that no further negotiations are expected at this time and that they are uncertain about next steps. But a senior White House adviser to President Joe Biden said he hoped for a solution.
The president will return early from the United States – interrupting his tour of the Asia-Pacific – just to personally resume the negotiations. The White House spokeswoman said he was informed several times a day about the state of the deal.
But Republicans are calling for budget cuts before greenlighting theraising the debt ceiling. The sticking point is the call for reducing federal spending to 2022 levels. That means cutting $130 billion in spending. “We can’t spend more next year,” said Kevin McCarthy. A taboo for the Democrats, who want to extend the debt limit to 2025.