Members of the House of Representatives on Wednesday voted overwhelmingly in favor of a text that suspends the debt limit until 2025, thus eliminating the risk of a possible bankruptcy of the United States from June 5, Reuters and Agerpres reported.

The bill, voted 314 to 117, must now pass the Senate, with the Democratic majority leader vowing on Wednesday to bring it up for a vote “as soon as possible” so “we avoid a default.” “. .

US President Joe Biden said that the adoption of the law to suspend the debt ceiling until 2025 is a “significant step forward” obtained thanks to a “bipartisan compromise”.

“Today, the House of Representatives took a significant step forward to prevent the first default” in the history of the United States, the President of the United States said in a statement from the White House.

The increase in the US debt ceiling followed a long period of tense negotiations that culminated in late May when investment bank JPMorgan estimated there was a 25% chance the US government would default.

Ratings agency Fitch announced last Wednesday that it had decided to put the US’s highest possible AAA rating “on watch” due to the risk of default. The decision “reflects political tensions that prevent resolution of issues such as raising or suspending the debt ceiling while the deadline is fast approaching,” the agency explained at the time.

Why are talks on the US debt ceiling taking so long?

Unlike most developed countries, the US has limits on the level of public debt it can achieve. The cap remains at $31 trillion until an increase is also approved by the Senate in Washington. Because the U.S. government has been spending more than it takes in for decades, this limit must be continually raised because it requires congressional approval.

In years when the White House, the US state executive branch, and Congress, the federal legislature in Washington, are under different political control, negotiations on raising the debt ceiling are often tough and marked by political battles, so the tension in recent months in raising the debt ceiling has not been nothing new.

But US congressmen usually reach an agreement before the situation becomes too dangerous. This year, however, the United States is already on the campaign trail for the November 2024 presidential and legislative elections, with both current President Joe Biden and former President Donald Trump announcing they will run for another term in the Oval. Office.

With many Washington lawmakers also running for re-terms in Congress next year, negotiations have dragged on significantly longer than in other years, with neither camp of America’s political duopoly, Republicans and Democrats, unwilling to appear weak to their constituents.

In essence, suspending the debt ceiling is a compromise that will be presented as a win for both parties: the Republican Party will argue that it was done out of patriotism to avoid a US default, while Democrats will argue that the measure allows President Biden’s social programs to continue.