Republican Speaker of the House Kevin McCarthy announced last Saturday evening (early Greek time) that he had reached an agreement in principle with President Joe Biden to increase the U.S. federal government’s borrowing limit, adding that the necessary votes were expected to take place on Wednesday, 31 May.

The agreement ended the political stalemate of recent months.

However, it is described in terms that do not seem absolute and without triumph, reflecting the extremely bitter tone of the negotiations, as well as the difficulties that may arise in passing it in Congress to prevent an unprecedented US default from being declared in the first days of June.

“I just got on the phone with the President (…) After he spent months refusing to negotiate, we have reached an agreement worthy of the American people in principle,” McCarthy tweeted.

According to the Reuters news agency, the agreement will raise the debt limit ($31.4 trillion, a world record) for two years, while at the same time providing for restrictions on government spending, with the exception of spending on the military and veterans. It also seems to satisfy some of the requirements put forward by the Republicans, such as requiring those who receive social assistance from the US government, especially food assistance, to work in exchange for it.

gentlemen On Saturday afternoon, Biden and McCarthy had an hour and a half telephone conversation about the deal. “We still have work tonight to finish it,” Mr. McCarthy told reporters on Capitol Hill. He added that the writing of the text is expected to be completed today, Sunday, and then discussed and voted again in Congress on Wednesday.

If the deal is approved on time, it will prevent a potentially devastating economic default in the US and around the world, which Treasury Secretary Janet Yellen has warned will begin around June 5 unless Congress increases or suspends the debt limit.

U.S. President Joe Biden expressed satisfaction Saturday night (early Greek time this morning) at reaching a “compromise” with Republicans that would increase the U.S. federal government’s debt limit and “avoid a catastrophic default.” “.

He pointed out that, in principle, the agreement “is a compromise, which means that each side does not provide everything it wanted.” He added that the text, the exact content of which is not yet known, only its rough outlines, “will reduce [δημόσιες] spending”, but “protection of necessary government programs”.

Mr. Biden spoke of a “significant step forward” while pointing out that the agreement was dictated by his “responsibility” for “governance.”

Source: APE-ME, AFP, REUTERS.