Clock is ticking: US debt ceiling dispute reaches a head Because Switzerland condemned executions: Iran summons ambassador to Tehran

No deal in sight in the deadlocked dispute over the increase in the US debt ceiling.

Another summit between US President Joe Biden and chief opposition negotiator Kevin McCarthy was scheduled for Monday. Time is running out: At the beginning of June, the US government is threatening bankruptcy with catastrophic consequences if Biden’s team does not reach an agreement with the Republicans in Congress on an increase in the debt ceiling by then.

The dispute accompanied US President Biden as he attended the G7 summit in Japan. The Democrat was regularly briefed in Hiroshima on the status of the negotiations. Because of the dispute, his journey to the G7 summit was sometimes even on the edge.

On his return trip to Washington on Sunday, Biden called McCarthy en route after the Republican asked the president to speak.

McCarthy rated the conversation as “productive”. Over the weekend, he again accused the government of abandoning a deal. The “socialist wing of the Democrats” controls the party, he said. After landing in Washington late Sunday evening (local time), Biden also gave a positive signal in terms of entertainment. “It went well,” Biden said. Now you have to keep talking.

Shortly before that, the American president sounded significantly different. Given the difficult negotiations, Biden on Sunday accused Republicans of taking extreme positions at his closing conference at the G7 summit. Some of the Republican negotiators’ proposals are simply “unacceptable.” Republicans need to understand that there can’t be a two-party deal that “exclusively, exclusively” follows their terms.

Biden said he was willing to cut government spending as the Republicans demand. But we also need to talk about government revenues, especially tax increases for top earners. The Republicans are not ready for that. Biden complained that there were major differences of opinion on this issue. “We can come to an agreement,” Biden stressed. “Default is not an option.”

In the US, parliament determines at irregular intervals how much money the state can borrow. This time, the procedure has degenerated into bitter jerking, which carries great dangers: a default by the world’s largest economy could lead to a global financial crisis and an economic downturn.

Biden eventually canceled a scheduled visit to Papua New Guinea and Australia to return to Washington directly from Hiroshima on Sunday.

It is not uncommon for Republicans and Democrats to agree on a new debt ceiling at the last minute. The situation is even more confused this time, however, because McCarthy’s Republicans have only a very slim majority in the House of Representatives. The parliamentary party also includes extremely radical members of parliament who show no interest in a realistic solution.

McCarthy must rally some radicals behind a potential deal with the Democrats to secure a majority vote. Otherwise, he would have to count on the support of the Democrats, which weakens his position as chief negotiator.

The world’s largest economy could go bankrupt on June 1, according to US Treasury Secretary Janet Yellen. The US would then no longer be able to pay most of its bills. Millions of people could lose their jobs as a result. In 2011, a Republican majority in Congress delayed raising the debt ceiling. At that time, the US credit rating was downgraded for the only time in history.

(yam/sda/dpa)