Biden and Republicans reach agreement on debt ceiling, now it’s up to Congress

AFP

NOS Nieuws•vandaag, 04:02

US President Joe Biden and Republican Speaker of the House of Representatives Kevin McCarthy have reached a preliminary agreement to raise the US federal government debt ceiling. This will enable the government to provisionally meet its debt obligations from 1 June.

The US is not quite out of the danger zone yet. Congress has yet to vote on the deal.

Biden and McCarthy spoke for about an hour and a half last evening about the deal that allows the government to borrow more to spend on education and infrastructure, for example. Afterwards, McCarth tweeted, “Just got off the phone with the president. After months of wasting time and refusing to negotiate, we have come to an agreement in principle worthy of the American people.”

Unpaid bills

The agreement is worth 29 billion euros. Without a deal, bills probably wouldn’t get paid and civil servants wouldn’t get paid.

An agreement on the debt ceiling is also important for the rest of the world. If there is no deal, consumer confidence could fall, resulting in less spending. As a result, foreign companies sell less stuff in the country. The stock markets would also feel the blows.

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