Negotiations over the U.S. debt ceiling issue are struggling.

President Biden held a press conference after the conclusion of the G7 Hiroshima Summit and said that the opposition Republican Party's proposal was "frankly unacceptable" and made it clear that there were still significant differences of opinion.

President Biden opened his remarks on the debt ceiling issue at a press conference after the conclusion of the G21 Hiroshima Summit on May 7.

Despite proposing more than $3 trillion in spending cuts in addition to the nearly $1 trillion deficit cut to date, Republicans said they were proposing to jeopardize food aid to nearly 100 million people while protecting the wealthy and others.

The U.S. media is reporting that Republicans are proposing stricter conditions for health insurance and food assistance for low-income people.

President Biden said, "It's time for Republicans to compromise away from their radical claims, and much of what they've been proposing is, frankly, unacceptable."

On the other hand, he also said, "All congressional leaders agree that default = no default, and the United States has never defaulted and will never default."

He announced his intention to speak directly with Republican Speaker McCarthy from the Air Force One presidential plane back to Washington.

Chairman McCarthy: "I hoped President Biden would change the debate"

In an interview with Fox TV on May 21, House of Representatives Speaker McCarthy criticized the debt ceiling hike, saying, "The difficult thing is that we haven't agreed on anything, and we used to feel that we could compromise by being in the same place where both sides could agree on things like cutting government spending, but we wanted President Biden to change the debate while he was abroad."

He then expressed his recognition that if a compromise can be found, it is possible to raise the debt ceiling.

In an interview with ABC TV on the 21st, Republican Rep. Jody Arrington, who chairs the budget committee of the House of Representatives, criticized President Biden's remarks at the press conference, saying that he was "just an excuse not to accept responsible negotiations to raise the ceiling" and called on President Biden to change his stance on negotiations.

History so far

In the United States, in order to maintain fiscal discipline, the government issues government bonds and sets a maximum limit on how much money can be borrowed.

Raising that cap would require congressional approval.

In January, the government's debt increased and reached its limit.

Treasury Secretary Yellen announced that as a temporary response, special measures have been initiated to make ends meet in civil servant and disability pension funds with funds that are not immediately needed.

Yellen said the funds available for the special measures could run out as early as June 1.

We have repeatedly asked Congress to raise the ceiling.

If the cap is not raised, US government bonds, which are traded around the world as reliable and safe assets, may default = default for the first time in history.

President Biden met with congressional leaders, including Speaker McCarthy, an opposition Republican, on May 6 and 1 in a row, and requested cooperation to raise the ceiling, but the talks did not reach a conclusion.

President Biden canceled his planned foreign visits to Australia and other countries after the G9 Hiroshima Summit and decided to respond by returning to Japan as soon as possible.

Negotiations at the person in charge level continued during President Biden's visit to the Japan, and House Speaker McCarthy said on the 16th, "We haven't agreed on anything, but maybe we can reach an agreement, and we can see a way," suggesting that the talks are moving forward positively.

However, on the 7th, things took a turn.

The talks were temporarily suspended after the Republican lawmaker in charge of the negotiations said that the negotiations were not productive.

White House Press Secretary Jean-Pierre admitted at a press conference held in Hiroshima on the morning of the 18th that "there is no doubt that there is a serious gap between the two sides," and said, "The Republican Party must not hold the U.S. economy hostage, which could cause an economic recession and cause the loss of millions of jobs."

In addition, Speaker of the House McCarthy said on the 19th, "Unfortunately, the White House is turning the negotiations upside down, and the Republican Party will not be able to negotiate until after President Biden returns from the G20 Hiroshima Summit," according to CNBC, an American economic channel.

Negotiations between the Biden administration and the opposition Republican Party are once again at a dead end.