US President Joe Biden shortens a trip to Asia in connection with US government debt ceiling negotiations. Biden thinks a solution is obvious, even if talks with Republicans have yet to lead to anything. The president’s decision is seen as a positive sign, says US correspondent Jan Postma. “There really is something to negotiate.”
According to Postma, the negotiations have entered a new phase. “Negotiations are also taking place in a small circle, with far fewer civil servants.” Republican House Speaker Kevin McCarthy is optimistic and thinks there could be a deal by the end of the week. ‘This is very optimistic, both sides are still far from each other. We’re not there yet.’
The debt ceiling is the maximum amount of debt the US government can take on by law. Biden wants Republicans, who have a majority in the House of Representatives, to agree to raise the debt ceiling without further conditions. Economists think the Treasury will run out of cash in August if the cap isn’t lifted.
Ache
According to Postma, both sides dug in. Biden wants to raise the ceiling to $31 trillion. Republicans only want to vote if the government makes major cuts, especially in social security. One of the jewels in the crown for Biden is the cancellation of student debts, according to Postma he does not want to get rid of them, even if the Republicans continue to insist. “You can see there is some shifting. Biden initially said he wasn’t going to cooperate with this, but at the same time now you see people talking about it.’
Republican House Speaker Kevin McCarthy said after meeting with Biden that there is still “a lot of work to be done.” According to Postma, both sides have reached a point where “it has to start to suffer”. “There has to be a compromise, but nobody knows how yet.”
“Negotiations are also taking place in a small circle, with far fewer civil servants”
G7
Biden will fly to Japan on Wednesday for a G7 summit. His itinerary also included stops in Papua New Guinea and Australia, but these are being scrapped. Instead, he will return to Washington on Sunday to address the debt ceiling crisis.
The goal is to reach an agreement on the debt ceiling by 1 June. Postma expects an agreement shortly before that date. “At least in the last week or even the last few days, so that it can go through Congress as well. That’s usually how it goes.
Source: BNR
Sharon Rock is an author and journalist who writes for 24 News Globe. She has a passion for learning about different cultures and understanding the complexities of the world. With a talent for explaining complex global issues in an accessible and engaging way, Sharon has become a respected voice in the field of world news journalism.
