EU reaches back to debt ceiling

EU reaches back to debt ceiling

Washington-The U.S. Treasury Department announced yesterday that as planned funding exceptional measures adopted in the absence of an extension of the debt limit by Congress.

"I urge Congress to protect U.S. credit and avoid potentially catastrophic consequences if the debt ceiling is not raised in time," wrote Jacob Lew, the Treasury secretary, in a letter sent to Congress yesterday.

Suspended after the budget commitment of mid-October, the U.S. debt ceiling was reactivated on Friday and must therefore be raised by Congress to allow the State to incur new debt to meet their financial obligations.

In order to expand its room for maneuver, the Treasury waive invest in two retirement funds administration officials, Lew said.

Those measures, reaching some 175 billion dollars will allow the State to operate until 27 February without having to issue new debt.

Only Congress has the prerogative to authorize an increase in debt, which had already undergone a crash last October, raising fears of a partial U.S. default.

No political tension

United States reached Friday deadline to enter bankruptcy and did so in an unusual atmosphere of tranquility, far removed from the political tension and misunderstanding of other occasions.

While Republicans are trying to include in the law authorizing extend the debt ceiling any condition that benefits them and show their strength to the White House, their leader in Congress, John Boehner, has made it clear that his party will not allow the country defaults.

Last October, as part of an agreement to end the government shutdown, Congress agreed to extend until February 7 ceiling limit debt, estimated at 17.3 billion dollars.

On Monday 3 February, the Treasury secretary, Jack Lew, warned that fulfilled then, his department would take extraordinary measures to keep borrowing money and secure the payment obligations of the U.S. measures, but they could not extend beyond the end This month, a shorter period of time than they have had in the past lawmakers to reach an agreement to avoid the dreaded default.

One possibility that Boehner has already made clear it will not allow it come true.