The Senate is voting on a proposal that will continue the financing of the state apparatus on Thursday.
The Senate will consider a proposal for temporary financing of the state apparatus on Thursday, the same day as the money runs out. According to Chuck Schumer, the leader of the Democrats in the Senate, the parties have agreed on the proposal, and it is thus expected that a shutdown will be avoided.
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Funding expires on Thursday. The proposal has the support of both parties and means that a shutdown of the state apparatus will probably be avoided.
– We have agreed on a temporary solution to avoid a shutdown. We will vote on it early tomorrow, said Chuck Schumer, the leader of the Democrats in the Senate, late Wednesday.
The House of Representatives will vote on the proposal, which will secure funding until December 3, shortly after it is considered in the Senate. There is broad support for the proposal in both chambers, and it is expected that it will be adopted.
The background is the discussions about the so-called debt ceiling in the USA, a limit for government debt. As the country has a deficit in the state budget, this ceiling must be raised.
Believe in solution
Earlier, Finance Minister Janet Yellen warned that the country’s debt will reach the ceiling as early as October 18, and that it must be raised if the United States is to continue to meet its obligations.
According to the Financial Times, the Democrats’ bill to raise the ceiling has so far been blocked by Republicans.
Economists still expect the political dispute to find a solution.
– Experience from many similar episodes in previous years has shown us that politicians find a solution in the twelfth hour. Thus, the effects on the financial markets of the political job war have largely been temporary, wrote chief economist Kjersti Haugland in DNB Markets in a morning report on Wednesday.
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