“President Biden & Republicans Agree on Debt Ceiling Increase to Avoid US Financial Crisis”

President Joe Biden and the Republicans in the House of Representatives have agreed on the main lines of an agreement to avoid a debt crisis in the United States. Now they have to convince a divided Congress.

In recent weeks, US President Joe Biden has been in intense negotiations with the Republicans in the House of Representatives, me

He needs their approval to raise the maximum amount that the US government is allowed to borrow, the so-called debt ceiling. The money goes to everything from salaries to welfare schemes.

The backdrop is serious: According to Treasury Secretary Janet Yellen, the public US would already ran out of money on 5 June if they are not allowed to borrow more.

If the US is unable to pay its debt, it could lead to a global financial crisis, Yellen has previously warned.

Biden and McCarthy confirm agreement

Now reports Kevin McCarthy, who is the majority leader in the House of Representatives, that he and Biden have come to an agreement on a so-called agreement in principle agreement in principle The term agreement in principle is often used to refer to situations where one agrees on the main principles of an agreement, but not all the details. to increase the debt ceiling in the United States.

This should have happened in a 90-minute long telephone conversation on the night of Sunday Norwegian time, writes Reuters.

– After weeks of negotiations, we have agreed on an agreement in principle. There is still a lot of work to be done, but I believe this is an agreement that is worthy of the American people, he says at a press conference on the night of Sunday Norwegian time.

Biden also confirms that the two have reached an agreement.

– The agreement prevents what could have been a catastrophic default, which could have led to economic recession, empty pension accounts and millions of lost jobs, he says in a statement on Twitter.

The details of the agreement have not been nailed down, and both parties must review the papers within a short time.

– In the next few days, negotiators will finalize the actual text of the law and an agreement will be sent to the House of Representatives and to the Senate, says the US President.

Must convince party members

Because even if the two leaders have agreed, one difficult job remains: the agreement must be voted through in both the House of Representatives and the Senate before the US government runs out of money

It may happen as early as June 5according to US Treasury Secretary Janet Yellen.

The Republicans have the majority in the House of Representatives, while the Democrats have the majority in Congress. The mood among the politicians in the two parties is very divided.

– The agreement is a compromise, which means that not everyone gets what they want, Biden signs Twitter.