After a break of several hours, Republican leaders in Congress have resumed talks with the White House, hoping to reach a final agreement on raising the debt ceiling sooner than expected, the President of the Congress announced. Chamber, Kevin McCarthy.
An official inside the White House said that the agreement “is still possible between the different parties, provided that the discussions are carried out with good intentions and a real desire to reach agreements”.
In an interview with “Sky News Arabia”, a member of the American Democratic Party, Mahdi Afifi, expected a “close breakthrough” in the debt crisis, pointing to the possibility that President Joe Biden would use a constitutional text that would allow him to act alone to resolve the crisis, without returning to Congress.
Hopes based on the talks
According to Afifi, US congressional leaders are currently in intensive discussions with White House officials to try to find a solution to the debt ceiling crisis as soon as possible. Both parties seem eager to reach an agreement quickly, although the state of disagreement still exists. Recently, the possibility of using Article 14 of the US Constitution, which allows the president to act without consulting Congress, has been raised. However, the current state of bickering between the Democratic and Republican parties risks hampering this option, for fear of falling into new political and legal disputes. Republicans are currently trying, according to Afifi, “to use the status quo for political gain by pressuring Biden and Democratic leaders for concessions on other issues.” Attempts to pressure Republicans may hamper a solution soon over the next few days, but it is expected that the file will be processed and solutions arrive before the beginning of next month.
What does it mean to not come to an agreement?
US economic analyst Derbel Jordan has predicted that “unless Democrats and Republicans agree to allow the United States to borrow more, the world’s largest economy will default on its $31.4 trillion debt. “. L. Simon French, chief economist of the investment bank “Panmure Gordon”, described the matter in case America did not reach an agreement, because it would be “closer to economic chaos”, referring to “the impending collapse of the global economy”. banking sector in 2008.” French pointed out that “if the United States fails to raise its debt ceiling, it will not be able to borrow any more money, and soon the money will run out paying public interest and other duties”.
Biden’s optimism
On Saturday, the American president expressed his “optimism” on the possibility of finding a solution to the crisis of the public debt ceiling.
“I still think we can avoid default,” Biden told reporters at the G7 summit in Hiroshima, Japan.
Reasons for disagreement
Republicans are demanding that Biden agree to a significant reduction in budget spending, in return for agreeing to raise the debt ceiling, ignoring repeated Democrats’ demand for an unconditional increase in the public borrowing limit. Democrats accused Republicans of using “excessive tactics to advance their political agenda” before the United States began to default on debt as the government ran out of money. White House spokeswoman Karen Jean-Pierre said, “Negotiators will continue to work toward a reasonable solution, to avoid default,” adding, “We remain optimistic.” The two sides have little time to reach an agreement to increase the federal government’s borrowing limit, or risk a catastrophic default. The US Treasury has warned that “the government may not be able to pay all of its obligations by June 1”.
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