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Aug

Obama and Leaders Reach Debt Deal

Written on August 1, 2011 by Ángeles Figueroa-Alcorta in Americas, Globalization & International Trade, Political Economy

By Carl Hulse and Helene Cooper

President Obama and Congressional leaders of both parties said late Sunday that they had agreed to a framework for a budget deal that would cut trillions of dollars in federal spending over the next decade and clear the way for an increase in the government’s borrowing limit.

With the health of the fragile economy hanging in the balance and financial markets watching closely, the leaders said they would present the compromise to their caucuses on Monday in hopes of enacting it before a Tuesday deadline to avert default.

Even as the president was speaking from the White House on Sunday night, Speaker John A. Boehner was on a conference call with House Republicans, trying to sell them on the proposal he had signed off on only minutes before.

Since he is likely to lose the most conservative elements of his rank and file, Mr. Boehner faces the task of framing the pact as friendly enough to Republican principles to win over a significant group of House Republicans without alienating Democrats he will need to push it over the top.

President Obama, in a hastily called appearance with reporters that ended a day of uncertainty, said that the compromise would “allow us to avoid default and end the crisis that Washington imposed on the rest of America.” Read more…

As published in The New York Times on July 31, 2011 (a version of this article appeared in print on August 1, 2011, on page A1 of the New York edition with the headline: Leaders Agree On Outlines Of Deal To End Debt Crisis).

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