“The US Debt Ceiling Crisis: Potential Default Status and Its Consequences for International Financial Markets”

In the US, parliament decides how much money the state can borrow. Without a deal to raise the debt ceiling, Treasury Secretary Janet Yellen said the U.S. government was at risk of “default” status on June 5, with potentially disastrous consequences for international financial markets.

A large part of the American government therefore threatened to come to a standstill. Without an agreement, civil servants would not receive a salary. The current agreement is worth a staggering €29 trillion.

Raising the debt ceiling is usually a routine job in the US, but tensions between Republicans and Democrats are making that job increasingly difficult.