US debt ceiling

USA:s skuldtak

J. Scott Applewhite / AP  

 

Sources: Debt ceiling can be raised for two years - agreement is taking shape  

 

Negotiations on the debt ceiling continue to move in the right direction, according to Republican Speaker Kevin McCarthy. That's what Bloomberg writes.  

 

- We worked into the night. I think we have made progress, he said in the Capitol on Friday on his way in to resume talks.  

 

Sources tell the news agency that the settlement that is about to take shape includes, among other things, a reduction of $10 billion in appropriations for the reorganization of the tax authority IRS. This has been a demand of the Republicans. At the same time, the government is said to get through a proposed increase in defense spending by 3 percent next year.  

 

As for the debt ceiling, what is on the table is an increase spanning two years, which would postpone the issue until after next year's presidential election.  

 

Exactly how much time remains is unclear. The Ministry of Finance's calculations are that the money could run out as early as June 1, i.e. on Thursday. 

 

Garret Graves, the Republicans' chief negotiator, is seen in a green tie. J. Scott Applewhite / AP  

 

Progress on the debt ceiling - but no agreement in place  

 

Progress is being made in negotiations on the US debt ceiling. This is what President Joe Biden says after new talks were held on Thursday, according to ABC News. 

 

- Going bankrupt and not being able to pay our national debt is not an option.  

 

Just under a week remains before the US can no longer pay its bills, which would be a death blow to the economy. When Republican chief negotiator Garret Graves ended Thursday's call, at 01:30 tonight Swedish time, he said that "forward movement is slow" but that much work remains, according to NBC's live report. 

 

- We will not stop negotiating. The Speaker has said that it is the highest priority.  

 

The speaker in question, Kevin McCarthy, left the Capitol shortly before. He said then that he will stay in Washington over the weekend to try to negotiate a deal.