Biden believes that the US will manage to “avoid a default” despite tense political negotiations

The American President, Joe Bidendeclared himself optimistic again on Saturday to reach an agreement with the Republican opposition to increase the country’s debt limit and avoid a default, despite tense negotiations to achieve it.

“I still think we can avoid a default and get something (a deal) decent,” Biden declared to the press during the G7 summit in Hiroshima, Japan.

With the warning of Department of the Treasury that the government of USA could run out of money as of June 1 – causing massive economic upheaval in the country and across the planet – the political battle in Washington it has wavered without any clear sign of resolution.

Republicans continue to insist that Biden must cut public spending if he wants to win their support to raise the country’s debt ceiling, a ceiling whose increase or suspension is the spring of the Congress.

The Democrats, meanwhile, maintain that the two things cannot be linked and want an increase in debt issuance capacity without conditions.

The leader of the Republicans in the United States House of Representatives, Kevin McCarthy, announced on Friday that negotiations to avoid a default entered a “pause”, amid “real differences” according to the White House.

Then the talks resumed. Biden was informed of the situation on Saturday morning in Japan, still Friday night in the United States, reported the White House.

Biden’s communications director, Ben LaBoltsaid that the “Republicans are taking the economy hostage,” in a message that has been reiterated by the White House. Are “pushing us to the limit of default, which could mean the loss of millions of jobs and send the country into a recession”, held.

Although Biden will not accept policies “extreme” of the republicans, “There is a way forward to reach a reasonable bipartisan agreement if the Republicans come back to the table to negotiate in good faith”he added.

differences

“The differences are great on many issues”deplored representative Patrick McHenry, one of the Republican negotiators, on Friday, quoted by the NewsNation site.

Shortly before, the White House spoke of “real differences” with the opposition.

But the return to negotiations restored optimism to the government, the White House spokeswoman summed up on Saturday, Karine Jean-Pierreafter the talks ended “just moments ago” in washington.

The president, who is at the G7 summit in Japan, cut short his tour of Asia to return earlier to Washington and try to get an agreement.

The pro-government camp presents the talks as an opportunity to discuss the budget, on which the Republicans are demanding cuts.

“We cannot spend more money next year” prosecutor, Republican McCarthy said on Friday, in a wrestling match with the White House that has been going on for weeks, as the date of June 1 approaches and the United States could enter into an unprecedented moratorium.

Biden and McCarthy held two meetings in recent days as the deadline that according to the Treasury Department it could put the United States between a rock and a hard place.

The Republicans claim to lower public spending and the fiscal deficit, and they want to reduce the issuance of debt that usually makes it possible to cover that gap.

Democrats and Republicans do not agree on this increase in the debt issuance capacity of USAdespite the fact that it is essential for the country to honor its payments to creditors, suppliers, pay salaries of public officials and pensions.

Raising the debt issuance limit is usually a routine procedure in the country, which has used this system dependent on Congress for decades. But this time, as has been the case more frequently, the issue is the subject of a political wrestling match.

The United States exceeded the maximum public debt issuance limit in January, which is US$ 31.4 billion, and since then extraordinary measures have been applied that only allow it to meet obligations for a while.

(With information from AFP)