Biden fails to break debt ceiling deadlock with Republicans

Talks between Democrat President Joe Biden and Republican Speaker of the House Kevin McCarthy failed to result in an agreement to raise the debt limit of the US government weeks ahead of a looming default.

Both the Democrat-controlled Senate and the Republican-controlled House of Representatives have to agree to raise the debt ceiling.

If not, there are fears that the US will default on its $31.4 trillion (€28.6 trillion) in debt.

Senate Democratic and Republican leaders Chuck Schumer and Mitch McConnell as well as House Democrat leader Hakeem Jeffries were also present for the hour-long talk.

What did the two sides say?

Biden called the talks with McCarthy "productive" but said the US defaulting "is not an option."

He also said that it was "possible but not likely" he may have to put off his planned trip to Japan later this month for the G7 meeting if the default issue is not resolved.

Biden said he was "still committed" to attending, "but obviously this is the single most important thing on the agenda."

McCarthy says White House 'has no plan B'

But McCarthy gave little reason for optimism, saying "I didn't see any new movement" from the president.

He also blamed Biden for waiting too long to hold the talks. "That's no way to govern," he said, adding that the White House "has no plan B."

The Republicans have called for spending cuts, using their majority in the House to leverage the White House. Biden said that he would look into getting back unspent COVID relief funds as a potential offer to the Republicans.

"I told congressional leaders that I'm prepared to begin a separate discussion about my budget, spending priorities, but not under the threat of default," Biden said.

Representatives of both sides will continue to meet this week to hash out a solution that will stave off the historic possibility of defaulting on the US debt.

ab/jsi (Reuters, AFP, AP)