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Biden reaches agreement with Republicans on the debt, the US avoids bankruptcy

2023-05-28 09:07:19Kosova&Bota SHKRUAR NGA REDAKSIA VOX
Biden reaches agreement with Republicans on the debt, the US avoids bankruptcy
Joe Biden in Congress

Republican House Speaker Kevin McCarthy announced that he has reached an agreement in principle with President Joe Biden to raise the US federal government's borrowing limit, adding that a vote is expected on Wednesday, May 31.

The deal on the debt, which has risen to $31.4 trillion, ends the political stalemate of recent months. According to Reuters, the agreement will raise the debt limit ($31.4 trillion, a world record) for two years, while at the same time providing for limits on public spending, as requested by Republicans, excluding those for the armed forces and veterans.

The concessions from Biden are a victory for the Republicans, who are basically holding the Biden administration "hostage", significantly limiting the movements in fiscal policy. But the question arises to what extent is it to what extent, since no clarifications have been given about the public expenditures that will be limited.

Obviously, this fact causes a problem for Democrats in the framework of the presidential elections of 2024. Biden and McCarthy held a telephone conversation on Saturday about the agreement.


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