Negotiations between Republicans and Democrats are progressing over time to avoid default in the United States

With the clock ticking on a possible US default, the Democratic president’s negotiators Joe Biden Republicans are trying to stop him b budget agreement.

Negotiators from the White House and Republican House Speaker Kevin McCarthy, They plan to continue talks after Monday’s meeting between their leaders.

Biden and McCarthy called their White House meeting “productive” and though it didn’t result in an agreement, it at least allowed them to set their own boundaries.

Within nine days, the United States risks finding itself in the unprecedented situation of being unable to pay its debt.; A dangerous fact for the first world power.

If Congress does not raise the government’s ability to borrow by then, Biden may be unable to pay officials, pay welfare benefits and pay off some creditors.

That the US bankruptcy It will have implications for the global economy. Analysts say that this will generate a state of panic and recession that may spread in the global economy.

To increase borrowing power — currently over $31 trillion — Republicans are demanding that Biden cut spending.

Democrats are willing to adjust spending but disagree with Republicans on how to do it. The White House would like higher taxes for the richest and largest corporations, without prejudice to social benefits or the president’s large investment projects. In short, increasing federal government revenue.

On the other hand, Republicans favor cutting public spending.

Commitment can be found, according to the American press, in some specific budget line, in A Re-allocation of funds allocated to combating the Corona virus In freezing certain expenditures, their duration is the subject of bitter debate.

Time is short, especially since it is not just about Biden and McCarthy coming to terms with each other. As Biden said, both parties will have to “sell” the agreement to their respective parties, so that they can agree to it in both houses of Congress.

Democrats control the Senate by a narrow margin, and Republicans have a majority in the House of Representatives.

Progressive Democratic senators and Republican lawmakers aligned with Donald Trump have already demanded the utmost firmness from their leaders.

A US default could change the tone of the campaign towards the presidential elections next year.

Biden, who is 80 years old to run for president, is battling to win votes with promises of prosperity and social justice. The recession could bring down an already poor approval rating.

His predecessor Trump, the favorite in the Republican primaries, told his people not to “bow” to the White House on the issue of debt.

(With information from AFP)

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