Solution imminent?
Biden sees rapprochement in the US debt dispute
May 25, 2023 at 9:51 p.m
After weeks of wrangling in the US debt dispute, there are signs of a rapprochement between the Democratic-led US government and the Republicans. There really isn’t much time left. President Biden says he made an offer.
Democratic President Joe Biden sees further positive developments in the bitter dispute over the US debt limit. Biden said in Washington that he had had several productive talks with Republican Speaker of the House Kevin McCarthy. “Our staff continue to meet as we speak and they are making progress.” The President stressed that he had made an offer to cut government spending. Now it needs a non-partisan agreement with the Republicans.
According to a leading US Republican, a possible agreement is with the Biden government until tomorrow Friday probable in his opinion. Kevin Hern, a senior member of the House of Representatives, said an agreement is getting closer. “I think they are working on some details right now,” he explained. “It is likely that we will see an agreement by tomorrow afternoon.”
In Washington, there has been a debate about raising the federal debt ceiling from the current $31.4 trillion for weeks. To take this step, Biden’s Democrats need the support of Republicans, who hold a majority in the House of Representatives. In the United States, Parliament decides the maximum amount of money the state can borrow. Without an agreement, the United States is threatened with insolvency, which experts say could have serious consequences for the global economy – and that from the beginning of June.
If it really came to that, it could result in a global financial and economic crisis. In the United States, it is feared that millions of people could lose their jobs. On the other hand, there have been similar scuffles over the debt ceiling regularly in previous years – so far always with a mild outcome.