The US President Barack Obama announced that the dispute at the Congress about advancing the US debt limit will not result in situation similar to one happened in the EU countries suffering from debt crisis.
“Despite the talks of some people, we are not Greece. We are not Portugal, - the US President reported to Agence France-Presse. According to Obama, the USA is in better condition, as for handling the financial issues of the country – “nothing radical” will be applied.
Disaccords between the republicans and democrats in the Congress concerning the measures against the US budget deficit for 2012 have been preventing its project approval for 5 months already. The Democratic Party representatives come for advancing the public debt limit reaching 14,294 trillion dollars at present. Their opponents from the Republican Party think that the deficit should be removed at the cost of state expenditures reduction.
On Thursday, Obama stated that parties’ leaders of the US Congress must come to a consensus regarding the debt limit advancement by the Saturday morning. The deadline for budget approval – the 2d of August. If Obama does not sign the final document version on time, the US Treasury will announce a technical default that may provoke another economic downturn, according to some experts.
The debt crises in Portugal and Greece have led to that EU countries were forced to give multi-billion loans to the states being on the default edge. With the purpose of handling the budget deficit the governments of countries were forced to take extraordinary measures implying the public expenditures reduction, including the social sphere. It has caused a massive dissatisfaction of citizens.
