United States: the date of a possible default adjusted to 5 June, negotiations continue

Five more days of respite... The United States may be unable to honor its financial commitments and therefore find itself in default from June 5, the US Treasury Department said Friday. A previous estimate put this date at 1 June.

"Based on the most recent data available, we now estimate that the Treasury will not have sufficient resources to meet the government's obligations if Congress has not raised or suspended the debt ceiling by June 5," Treasury Secretary Janet Yellen said in a letter to congressional officials.

The White House and negotiators continue Friday to forge a compromise rich in political ulterior motives. The challenge for the government is to get Congress – the Republican House and the Democratic Senate – to vote quickly to raise the public debt ceiling, otherwise the United States could find itself in default, an unprecedented situation with potentially catastrophic economic, financial and social implications.

A very tight schedule

This parliamentary maneuver has long been a formality for both parties. But this time the Republicans are demanding, in exchange for their green light, a reduction in public spending. Officially, Joe Biden refuses to negotiate, believing that he is being held "hostage". In reality, the advisers of the two camps have been talking non-stop for days and according to several American media, have already agreed on some broad lines.

If an agreement is reached, it will still have to be passed by the Senate, narrowly controlled by the Democrats, and by the House of Representatives, on which the conservatives have a fragile majority. The parliamentary calendar is constrained: many elected officials have returned home to the four corners of the United States for a break of several days, on the occasion of the extended weekend of "Memorial Day".

Joe Biden knows that he has a lot to lose in the event of default, he who is already struggling with a reduced approval rating, and with recurring questions about his age and vitality. "There are Trumpists in the House of Representatives who know the damage (a default) would do to the economy. And because I'm the president, and because presidents are responsible for everything, Biden would be held accountable. And that's a good way to make sure Biden doesn't get re-elected," he said at a recent news conference.