An agreement was reached on Tuesday to allow the US Congress to vote soon on an increase in the debt ceiling and thus avoid a default by the United States, an imminent threat with potentially catastrophic consequences.
Read alsoThe US Congress rejects the threat of a default by the United States
The debt ceiling is the maximum amount of debt of the United States. Set by the US Congress, it must be lifted or suspended by December 15, otherwise the United States would no longer be able to honor payments to its creditors overnight and would have to cut spending. This unprecedented situation would plunge American finance and economy, but also, by extension, international ones into the unknown and could cause a recession.
The United States, which like almost all major economies has lived on credit for decades in terms of public spending, has already repeatedly raised this famous
"ceiling"
, which normally requires the votes of elected Democrats and republicans. But the Republican opposition refuses to do so this time, assuring that it would amount to offering a blank check to Joe Biden, at the same time as they accuse him of contributing to runaway inflation. After weeks of negotiations, they finally gave their approval on Tuesday to a complex parliamentary procedure, through which Democrats would only need their votes to raise the debt ceiling.
"I think it is in the interest of the country"
avoid default, powerful Senate Republican leader Mitch McConnell said on Tuesday.
This procedure must be validated by the House of Representatives on Tuesday evening, which would allow Congress to raise the debt ceiling before December 15.
Gigantic plan
The urgency is twofold.
Because Congress needs to get rid of this site as quickly as possible to finally debate the gigantic social and ecological plan of Joe Biden, thanks to which the president promises to
"rebuild (America) better"
.
This 1750 billion dollar project, very popular among Americans according to polls, includes free kindergarten for all and generous funding to reduce American greenhouse gas emissions.
But he has been blocked for months in the US Parliament.
Democratic Senate Leader Chuck Schumer reiterated Tuesday his willingness to offer Joe Biden this political victory
"before the Christmas holidays"
.
