A solution is on the horizon to avoid a US government default

There is a solution looming in the political row over an imminent default on the part of the US government. The House, which is dominated by Democrats, kicked off a parliamentary process with a vote on Tuesday evening (local time), at the end of which Senate Democrats could decide to raise the debt ceiling by a simple majority — So without the support of the Republicans who are totally against it.

US Senate Minority Leader Mitch McConnell said Tuesday (local time) in Washington that he and Senate Democratic Majority Leader Chuck Schumer have reached an agreement on the measure. So Democrats must raise the debt ceiling to a certain amount themselves, once and by a simple majority. In the first formal step, at least 60 senators will have to pave the way for proceedings in the Senate, He said. McConnell said he was confident enough votes from his party would be gathered to do so. Ten Republicans must go.

McConnell said the actual increase in the debt ceiling should be decided by Democrats alone. In a simplified procedure, this would require just 51 votes in the Senate – the very small majority that Democrats have there. “I think it’s in the country’s best interest to avoid default”Republican said.

A default in the world’s largest economy could lead to a global financial crisis and economic downturn. According to an assessment by the Congressional Independent Budget Office (CBO), the government could default before the end of the month if Parliament does not raise the debt ceiling. The Treasury recently warned that President Joe Biden’s government could run out of money by mid-December.

The political turmoil lasted for a long time. The US Congress last approved an increase in the debt limit by $480 billion (just under €424 billion) in October in order to give President Joe Biden’s government at least a deadline until the beginning of December. (saw / sda / dpa)

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