Biden assured that the agreement with the Republicans on the debt ceiling protects the key priorities of the United States. (AP)
The US president, Joe Biden, affirmed this Saturday that the beginning of the agreement on the debt ceiling reached with the Republicans contains concessions from the Democrats, but maintains the “key priorities” of his government.
“The agreement represents a compromise, which means that not everyone gets what they want. That is the responsibility of governing, ”he said in a statement.
However, he added, the agreement “protects” his “key priorities” and “the legislative achievements of Democrats in Congress.”
“It is an important step forward that reduces spending while protecting critical programs for workers and growing the economy for all,” Biden added, a few minutes after House Speaker Kevin McCarthy confirmed a “principle of agreement”.
In a brief press appearance, the Republican leader explained that the legislators will continue with the drafting of the bill. After this, he will consult with the White House and will speak with Biden on Sunday afternoon before publishing the text, which will be voted on on Wednesday, May 31.
Kevin McCarthy explained that legislators will continue with the drafting of the bill. After this, he will consult with the White House and will speak with Biden on Sunday afternoon before publishing the text, which will be voted on on Wednesday, May 31. (Reuters)
According to Biden, the agreement is “good news for the American people, because it avoids what could have been a catastrophic default and would have led to an economic recession, devastated retirement accounts and millions of lost jobs.”
“Our negotiating teams will finalize the legislative text and the agreement will go to the US House and Senate. I strongly urge both chambers to approve the agreement immediately,” concluded the US president.
Although no details are known about the agreement, according to McCarthy it includes a “historic” reduction in public spending and reforms that “will lift people out of poverty and incorporate them into the workforce.” He also stressed that it does not contain new taxes or new government programs.
The pre-agreement comes a day after Treasury Secretary Janet Yellen estimated the June 5 deadline after which the country could find itself in default if Congress does not first agree to raise or suspend the debt ceiling.
The debt limit is the total amount of money the United States Government is authorized to borrow to meet its existing legal obligations to pay Social Security and Medicare benefits, military salaries, interest on the national debt , tax refunds and other payments.
The pre-agreement comes a day after Treasury Secretary Janet Yellen estimated the June 5 deadline after which the country could find itself in default if Congress does not first agree to raise or suspend the debt ceiling. (Reuters)
From time to time, the United States faces default on its national debt because, unlike other countries, the government can only issue debt up to the limit set by Congress, which has the power to raise that ceiling as it sees fit.
The country reached its legal debt limit of 31.4 trillion dollars on January 19, which led the Treasury Department to resort since then to extraordinary measures to pay the bills.
Biden had been quite “optimistic” about the possibility of a deal, as had McCarthy, who said he felt “closer to a deal now than he had been in a long time.”
One of the main points of disagreement between both rows is the request of the Republicans to condition certain social benefits, such as food aid at work.
One of the main points of disagreement between both rows is the request of the Republicans to condition certain social benefits, such as food aid at work. (Reuters)
“I don’t think it’s right to borrow money from China to pay healthy people who don’t have dependents to hang out on their sofa. It’s not the American way of doing things… That’s not what we believe in,” said McCarthy, who declares himself an uncompromising defender of fiscal discipline.
White House deputy spokesman Andrew Bates criticized Republicans for jeopardizing “more than eight million jobs” while trying to “take bread out of the mouths of hungry Americans.”
(With information from AFP and EFE)
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