As the countdown ticks away before a possible bankruptcy of the United States, the teams of Joe Biden and the negotiators of the Republican camp will again try on Tuesday to snatch a budget compromise.
The dedicated White House team and that of Republican House of Representatives boss Kevin McCarthy are due to resume work on Tuesday morning, according to a source familiar with the matter.
They have already worked late into the evening on Monday, on the foundations laid by their two bosses during a one-on-one on Monday.
Joe Biden and Kevin McCarthy each called their interview "productive." Failing to reach a compromise, he at least allowed the Democratic president and the Republican leader to set their respective red lines.
It was time, after a blocking weekend, and as June 1 inexorably approaches, the now famous "X-date" calculated by the US Treasury.
In nine days, the United States risks finding itself in the unprecedented and perilous situation of a payment default, in other words, bankruptcy on the scale of the world's leading power.
If Congress, divided between the two major parties, does not lift the debt ceiling that constrains the federal government, the Biden administration could find itself unable to pay certain civil servants, pay certain social benefits, and reimburse some creditors.
The result, economists say, would be a financial panic and a massive recession, with a global contagion effect.
To vote for a higher debt ceiling — it's currently over $31 trillion — Republicans are demanding fiscal discipline.
The Democrats led by Joe Biden are also in favor of reducing the deficit.
Problem: Each side has opposing ideas on how to achieve this.
The White House would like to focus the effort on the richest and big companies, via heavier taxation, without touching social benefits or the president's huge investment projects. Clearly, to increase the revenues of the federal state.
The Conservatives, on the other hand, would rather cut public spending.
The compromise, according to the American press, could be found on a few targeted budget items, in a reallocation of funds intended to fight the Covid-19 pandemic, and via a freeze on certain expenses, the duration of which is fiercely discussed.
Time is running out all the more so since it is not just a question, for Joe Biden and Kevin McCarthy, of reaching an agreement between them. It will be necessary, the American president said, "sell" the compromise to their respective parties, so that they approve it in the Senate and the House of Representatives.
The Democrats control the Senate by only a short head, while the Republicans have only a few majority seats in the House.
However, the progressive senators on the Democratic side, and the elected Trumpists on the Republican side, have already given voice to demand the greatest firmness from their respective leaders.
A default could change the face of the 2024 presidential campaign.
Joe Biden, who at 80 is seeking re-election, is struggling to excite public opinion with his promises of prosperity and social justice. A recession could sink his already thin confidence rating.
Former President Donald Trump, favorite in the Republican primary, for his part calls on his camp not to "bend" in the face of the White House in the debt file.
23/05/2023 16:12:50 - Washington (AFP) - © 2023 AFP
