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US debt ceiling negotiations stalled – news.ORF.at

US debt ceiling negotiations stalled – news.ORF.at

Yesterday, the difficult negotiations on raising the debt ceiling in the United States of America came to an abrupt halt after encouraging signs. US media reported that the Republican negotiators left the talks about an hour after they began.

House Republican negotiator Garrett Graves told reporters that Democrats led by President Joe Biden were “unreasonable” and that talks were at a standstill.

Time is of the essence: At the beginning of June, the US government is threatened with default if Team Biden does not reach an agreement with congressional Republicans on raising the debt ceiling by then. In the United States, Parliament sets such a limit at irregular intervals and limits the amount of money the state can borrow.

This time, the proceedings turned into bitter partisan-political squabbles. This is dangerous for the United States and beyond: the underdevelopment of the world’s largest economy could lead to a global financial crisis and economic downturn.

Due to the budget crisis at home, Biden’s participation in the G7 summit in Japan has been temporarily on edge. He eventually canceled the second leg of his trip abroad—visits to Papua New Guinea and Australia—to return to Washington directly after the Hiroshima deliberations.

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