EFE.- The United States Congress avoided a government shutdown on Thursday just hours before it ran out of funds, but that achievement was overshadowed by the internal war waged by the Democratic Party that has left the US president’s agenda in limbo. Joe Biden.
The closure of the Administration would have had a negative impact for the US economy, but also for the world economy due to its effect on the markets.
Neither the Democrats nor the Republicans were interested in a government shutdown and that is why, in the last hours, they agreed to pass a law to increase funds until December 3, at which time they will have to reach another agreement to prevent the Administration is paralyzed.
The Senate, with a Democratic majority, was the first to approve the initiative with 65 votes in favor and 35 against; While the House of Representatives, also dominated by Biden’s party, endorsed it an hour later with the support of 254 legislators and the rejection of 175.
Now, the project will be sent to the White House where the President of the United States, Joe Biden, will sign it to take effect.
In the last 45 years, there have been about twenty government shutdowns, although most lasted only one day. The longest, 35 days, occurred during the presidency of Donald Trump (2017-2021) due to disagreements over the wall with Mexico.
THE DEBT CEILING, UNRESOLVED
This time, the approval of a law to finance the Government was delayed by the battle between Democrats and Republicans to approve a suspension of the debt ceiling and prevent the United States from incurring a suspension of payments of the national debt on October 18.
At first, the Democrats linked the approval of a law to avoid the closure of the Administration with the debt ceiling; But in recent days they had to separate the two initiatives because the Republican Party, traditionally favorable to fiscal discipline, is opposed to increasing the debt.
The Secretary of the Treasury, Janet Yellen, and the president of the Federal Reserve (Fed), Jerome Powell insisted this Thursday that not acting would have “catastrophic” consequences for the United States, for which they considered “essential” and “imperative” that Democrats and Republicans reach an agreement.
“It is imperative that Congress address the debt limit (…) It is necessary to avoid a catastrophic event for our economy,” Yellen warned during a hearing in the Lower House.
That issue, however, is far from resolved and neither Democrats nor Republicans seem willing to budge.
BIDEN’S AGENDA HANGS BY A THREAD
The other issue where an agreement seems difficult is Biden’s economic agenda, which is hanging by a thread due to tensions between the centrist and progressive flanks of the Democratic Party.
This same Thursday the House of Representatives is expected to vote on a law of 1.2 billion dollars destined to rebuild the country’s infrastructure; But the 95 legislators who make up the progressive wing have threatened to vote against it if an agreement is not reached beforehand to approve a large social spending package.
This social plan, promoted by Biden, seeks to raise taxes for the richest and companies with the aim of expanding health coverage, fighting poverty, improving education and implementing measures against the climate crisis.
At first, progressives wanted that social plan to be valued at up to $ 10 trillion, but an agreement was reached to reduce it to $ 3.5 trillion.
However, this Thursday, centrist Senator Joe Manchin of West Virginia called a surprise press conference and made it clear that he supports a package of only 1.5 trillion dollars, something that automatically provoked the rejection of the progressives.
While the two sides made statements to the press in the corridors and outside the Capitol, the president of the House of Representatives, Democrat Nancy Pelosi, has been trying for hours to reach an agreement and still believes she can achieve it, a Democratic adviser from high rank.
Especially, progressives want me to specify how much money will be allocated to the social plan.
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Biden, who has been criticized by some legislators for having played a low-key role in the negotiations, has tried to play the role of mediator in recent days and today he kept his agenda clear to be able to talk by phone with legislators.
At stake are not only the ideas that served Biden to get to the White House, but the image of the Democrats and their credentials for the legislative elections next year.
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