Budget agreement in the usa: latest shutdown probably averted

Budget agreement in the usa: latest shutdown probably averted

Five weeks before another threatened shutdown of the u.S. Administration, democrats and republicans wrangled their way to a budget plan for the next two years. By the deadline of 15. But the senate and house of representatives still have to vote on the paper in january.

The bill eases the planned across-the-board budget cuts of $65 billion (47.3 billion euros) for 2014, which had severely affected the US military and several agencies, among others. Instead, significant cuts are to be made in other areas – but no longer in accordance with the turf-mowing principle previously provided for in the law. Even if government spending initially rises again, the U.S. Deficit is expected to shrink by 23 billion dollars in the long term.

Already huge spending on the u.S. Military is set to rise further. They account for more than half of the budget. Countermeasures to be taken with higher airline ticket prices. Tax increases are not planned, contrary to the wishes of US president barack obama.

The budget compromise followed language from both camps, led by democrat patty murray and republican paul ryan. They are the chairs of the senate and house of representatives finance committees. Both parties had agreed to reach a deal by friday of this week at the latest. Ryan called it a "clear improvement on the status quo". One has "broken through partisanship and obstructionism," murray said.

Obama immediately praised the agreement as a "good first step" and urged members of congress to vote for the bill. Obama had sharply criticized republican obstructionism in the budget dispute.

The conservative tea party movement caused the 16-day government shutdown in october to force the democrats to their knees in the budget dispute. Many agencies, offices and museums in the u.S. Had to be closed, hundreds of thousands were affected. The major catastrophe was finally avoided with a transitional settlement, but the deadline for a final agreement is short.

In order to avert another budget resolution for the next two years, the congress has until 15 january to approve the budget. January time. The deal is not yet in the bag, however, as several conservatives have already announced opposition. "Americans should not have to choose between a strong military and responsible budgets," republican congressman marco rubio shared.

A vote in the house of representatives was expected this week, on friday the deputies say goodbye to the christmas holidays. Republican john boehner, chairman of the chamber, signaled his support. The compromise is "modest in scope" but a "positive step forward," boehner said. His party colleague rubio called the proposal "irresponsible" because expenditures would exceed revenues.

Although the U.S. Budget deficit has more than halved in the five years since obama took office and now stands at 680 billion dollars (495 billion euros), the budget deficit is still high. But the mountain of debt is still huge. In october, the national debt rose above the $17 billion mark for the first time. With the upcoming debate on the currently suspended debt limit, the next fiscal clash is already on the horizon. Congress must act by 7. February to decide on borrowing limit, or U.S. Faces default.

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