2023-05-21 12:29:44
(Washington) There are only ten days left for the White House and the Republican opposition to reach an agreement on the debt ceiling, and allow the United States to continue paying their bills, but the negotiations seemed in the stalemate on Sunday.
The Republicans are indeed demanding drastic budget cuts before giving the green light. The Democrats refuse. And each camp accuses the other of being responsible for this situation.
Joe Biden is due to return from Japan on Sunday evening, where he was attending the G7 leaders’ summit. He must speak from the plane, by telephone, on the way back, with the leader of the Republicans in the House of Representatives, Kevin McCarthy.
The Democratic President of the United States slammed the Republican proposals on Sunday: “It is time for the other side to abandon its extreme positions, because much of what it has already proposed is simply, frankly, unacceptable”, he said. he said, believing however that a solution might still be found.
” I do not think so [que ces propositions] are extreme, I do not think they are draconian, ”retorted Kevin McCarthy, Sunday on the Fox News channel. Joe Biden wants “more a default than an agreement”, he lambasted.
Time is running out to prevent the United States from defaulting on payment, an unprecedented situation with potentially catastrophic consequences for the American and even global economy.
1is June
The first economy in the world, in fact, would then be unable to repay its creditors, but also to pay certain salaries of civil servants or pensions of veterans.
This might happen as early as 1is June, according to the Treasury Department.
“I indicated in my last letter to Congress [lundi] that we expect to be unable to pay all our bills from the beginning of June, and possibly as early as the 1is June,” Treasury Secretary Janet Yellen said in an interview with NBC on Sunday.
“My assessment is that the chances of reaching June 15 while being able to pay all our bills are quite low,” the secretary added, calling for a deal to be reached before June 1.is June.
It also ruled out the possibility of an appeal to the 14e amendment to the US Constitution, which might theoretically make it possible to circumvent the obligation to raise the ceiling. The article indeed states that “the validity of the public debt of the United States […] should not be questioned”.
It doesn’t seem like it can “be used appropriately in these circumstances, given the legal uncertainty surrounding it and given the tight deadline”, according to Janet Yellen.
Joe Biden had, a little earlier, indicated that he was studying this possibility, noting however that the question was whether he “can be done and invoked in time”.
“Big step back”
Almost all major economies live on credit. The United States has already raised the debt ceiling – the country’s maximum amount of debt – a prerogative of Congress on numerous occasions. A formality that has become a political battle.
However, optimism was in order in the middle of the week, following a meeting between Democratic and Republican congressional officials with Joe Biden at the White House.
But the proposal made Friday evening by the Republican team “was a big step backwards”, according to White House spokeswoman Karine Jean-Pierre, deploring “a set of extreme partisan demands”.
She pointed the finger at Republican officials, under the thumb of Donald Trump’s relatives, “who [menacent] to put our nation in default for the first time in our history”.
Mr. McCarthy had also mentioned Saturday evening “a step backwards in the negotiations”, but on the part of the White House, accusing “the left wing of the Democratic Party” of being “in control”.
Joe Biden estimated on Sunday that Mr. McCarthy was probably waiting for his return to resume discussions: “I think he wants to deal directly with me”.
The sticking point: the Republicans’ demand to reduce federal spending, to bring it back to 2022 levels. That is to say, cut $130 billion in spending.
A red line for the Democrats.
The Biden administration is proposing to cut spending while raising taxes for the wealthy and corporations that today benefit from generous tax rebates. What the Republicans refuse.
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