President Joe Biden and Republican Kevin McCarthy have made a breakthrough in the US debt dispute and are expected to stave off bankruptcy in the world’s largest economy. The project still needs to be approved by Congress.
Biden said it was an important step forward that would reduce spending while protecting vital programs for working people and strengthening the economy for everyone, according to the White House. In addition, the agreement protects the most important parts of its agenda. “The agreement is a compromise, which means not everyone gets what they want.” In the coming days, the negotiating teams would finalize the text of the law. The agreement will be sent to the House of Representatives and the Senate. “I urge both chambers to immediately approve the agreement.”
After speaking with Biden on the phone, McCarthy said: “After weeks of negotiations, we have reached an agreement in principle. We still have a lot of work ahead of us. But I believe this is essentially an agreement worthy of the American people. There will be a vote in the House of Representatives on Wednesday.
Time is running out
The draft must be approved in both chambers of Congress and signed by the president as soon as possible, so that an imminent bankruptcy of the US government is effectively averted. US Treasury Secretary Janet Yellen recently warned that money could run out on June 5. This was preceded by a fierce row that even led US President Joe Biden to cancel trips abroad.
In the United States, parliament sets a debt ceiling at irregular intervals and determines how much money the state can borrow. This debt ceiling of approximately USD 31.4 trillion has now been reached and the Treasury must draw on the capital reserves. Biden and his Democrats need the Republicans in Congress to raise the debt ceiling.
The next hurdle becomes a challenge
The next hurdle is Wednesday’s vote in the House of Representatives. The situation there is particularly confused because the Republicans have only a very narrow majority. There are also radical MPs in the parliamentary party who show no interest in a realistic compromise. At the beginning of the year, McCarthy was only elected Speaker of the House of Representatives by his group after a historic electoral chaos. This had greatly weakened his position.
The debt limit dispute is now a major test for McCarthy as he must deliver results for his party. He must also succeed in rallying some radicals behind a possible agreement in order to get the broadest possible majority in his party. If he had to count on a particularly large number of Democrat votes because his party members opposed him, it would further weaken him.
Source: Krone
I am Wallace Jones, an experienced journalist. I specialize in writing for the world section of Today Times Live. With over a decade of experience, I have developed an eye for detail when it comes to reporting on local and global stories. My passion lies in uncovering the truth through my investigative skills and creating thought-provoking content that resonates with readers worldwide.
