US Republicans and Democrats have been arguing about raising the debt ceiling for weeks. Now there should be progress in the negotiations.
According to a media report, an agreement seems to be in the offing in the bitter dispute over the US debt limit. The New York Times reported on Thursday evening (local time), citing unnamed sources, that the Democratic and Republican negotiators had begun drafting a legal text. However, some details are still open. According to the newspaper, the debt ceiling is to be raised for two years. Expenditure for all areas except military and veterans should therefore be limited during this period.
For weeks, Democrats and Republicans have been arguing in tough rounds of negotiations about raising the debt ceiling. Democratic President Joe Biden emphasized in the afternoon (local time) that there was progress. Republican House Speaker Kevin McCarthy said it wasn’t easy — but they were working on a solution. The Republicans want to force the Democrats to make savings in return for an increase, for example in the social sector. The Democrats, on the other hand, argue that the money will not finance new spending – it will serve to meet commitments already made.
In the United States, Parliament decides the maximum amount of money the state can borrow. According to forecasts by the Ministry of Finance, an unprecedented government default is imminent from the beginning of June. If it really came to that, it could result in a global financial and economic crisis. In the US alone, it is feared that millions of people could lose their jobs.
I have been working in the news industry for over 6 years, first as a reporter and now as an editor. I have covered politics extensively, and my work has appeared in major newspapers and online news outlets around the world. In addition to my writing, I also contribute regularly to 24 Hours World.