WASHINGTON – The White House and Republican leaders of Congress have made significant progress toward a last-minute agreement on the U.S. debt, according to official sources informed of the discussions that took place this weekend. The United States will find themselves in default if a compromise is not reached by Tuesday.
The U.S. has until Tuesday to reach an agreement in Congress on raising the debt ceiling, currently set at 14,300 billion (about 9.882 billion euros), and avoid a potential financial disaster for the economy National still recovering from the crisis, and that may have repercussions abroad.
As part of the negotiated plan late Saturday night, the country’s debt ceiling would be raised in two stages of approximately 2,400 billion (about 1670 billion) and expenditures would be reduced by an amount slightly higher according to official sources familiar with the talks. The first increase in debt load of about 1000 billion (695 billion euros), intervene immediately and the second later in the year.
Congress would be asked to vote on a constitutional amendment on balancing the budget, but no increases in the debt ceiling would be dependent on approval, we stated the same sources.
President Barack Obama has threatened to veto any legislation that may result in a repeat of the crisis next year, the year of the presidential election. But he accepted the request of Republicans who demand that deficits are reduced, not increased taxes in return for more borrowing authority for the United States.
“There is very little time,” Obama recalled in his speech Saturday weekly radio and the Internet. He called for an end of partisan maneuvering, saying that “the time of the compromise on behalf of the American people came.”