(Washington) Joe Biden is ready to “compromise” with the Republican opposition on public spending, to end a political standoff that could throw America into default, assured Wednesday a source close to the case.
The American president made his opponent Kevin McCarthy, head of the House of Representatives, a proposal on certain expenses which would reduce the federal government’s bill by “more than 1000 billion dollars over 10 years. »
This would come on top of the deficit reduction already promised by Joe Biden, which amounts to 3 trillion over ten years.
The White House would also, still according to this source, be ready to cap public spending for two years, where the Republicans are asking for a longer period.
The 80-year-old Democrat, who initially had simply ruled out negotiating under the threat of bankruptcy, also offered to reallocate funds that had originally been earmarked to respond to the COVID-19 pandemic.
Treasury Secretary Janet Yellen once again recalled on Wednesday that it was urgent for Democrats and Republicans to find a budget compromise so that Congress can vote to raise the public debt ceiling.
The Conservatives condition their vote on an agreement on a cut in public spending.
If the Congress – divided between the Democratic Senate and the Republican House of Representatives – does not act, “it seems almost certain that we will not be able to hold out beyond the beginning of June”, recalled Janet Yellen.
From 1er June, the United States could therefore find itself in default of payment, that is to say unable to honor its financial commitments, whether in terms of salaries, pensions or reimbursements to their creditors.
This unprecedented scenario would, according to economists, be synonymous with a massive recession and market rout in the United States, with possible contagion throughout the global economy.