Monday, July 18, 2011

U.S. government bankruptcy: Compromise plan raises hope for solution in debt dispute

In the U.S. budget dispute apparently stands for a solution: The parliamentary leader of the Democrats and Republicans in the Senate are working on a plan, which foresees a gradual increase in the debt limit. Obama would need to first only the votes of his own party.
Two weeks prior to the technical state bankruptcy, there are signs that the parties could agree on a solution soon. In the Senate worked on Sunday the chairmen of the Republican and Democrat, Harry Reid and Mitch McConnell, a compromise proposal in the coming years foresees a gradual increase in the debt ceiling, as the newspaper "Washington Post" reported.

The newspaper called details of the compromise proposes that if the debt limit in three steps without support from the Republicans by 2.5 trillion (1.77 trillion euros) will be increased. At the same time, the plan over the next ten years, cut spending by 1.5 trillion dollars - a concession to the Republicans.

The White House budget director, Jake Lew, confirmed the plan.

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