Crisis averted – at least temporarily: US President Biden has signed the suspension of the debt ceiling. In 2025 it should take effect again.
US President Joe Biden has signed legislation temporarily suspending the US government debt ceiling. This was announced by the White House in Washington on Saturday. Congress had previously voted in favor of the project, thus preventing an imminent default. Biden now had to sign the law into force.
The law provides for the debt ceiling to be suspended until 2025. It was last at around 31.4 trillion dollars (about 29.1 trillion euros). At the same time, government spending will be limited over the next two years.
Only after a long nail-biter and bitter party-political battles did Biden’s Democrats and the Republicans agree on a compromise. According to the Ministry of Finance, without this the government would have run out of money on Monday. A default by the world’s largest economy could have triggered a global financial crisis and economic downturn.
