WASHINGTON: The US Senate on Thursday passed bipartisan legislation backed by President Joe Biden that lifts the government’s $31.4 trillion debt ceiling, averting what would have been a first-ever default.
The Senate voted 63-36 to approve the bill that had been passed on Wednesday by the House of Representatives, as lawmakers raced against the clock following months of partisan bickering between Democrats and Republicans.
The Treasury Department had warned it would be unable to pay all its bills on June 5 if Congress failed to act by then.
“We are avoiding default tonight,” Senate Majority Leader Chuck Schumer said on Thursday as he steered the legislation through his 100-member chamber.
Biden praised Congress’ timely action. “This bipartisan agreement is a big win for our economy and the American people,” the Democratic president said in a statement, adding that he will sign it into law as soon as possible. He said he would make an additional statement on Friday at 7 PM
Biden was directly involved in negotiations on the bill with House Speaker Kevin McCarthy.
While this bitter battle has ended, Senate Republican Leader Mitch McConnell wasted no time flagging the next budget fight.
“In the coming months, Senate Republicans will continue working to provide for the common defense and control Washington Democrats’ reckless spending,” he said in a statement.
McConnell was referring to 12 bills Congress will work on over the summer to fund government programs in the fiscal year beginning Oct. 1, which will also carry out the broad instructions of the debt limit bill.
Treasury Secretary Janet Yellen, meanwhile, issued some pointed advice saying, “I continue to strongly believe that the full faith and credit of the United States must never be used as a bargaining chip,” as Republicans did over the past several months.
Before the final vote, senators tore through nearly a dozen amendments — rejecting all of them during a late-night session in anticipation of Monday’s deadline.
With this legislation, the statutory limit on federal borrowing will be suspended until Jan. 1, 2025. Unlike most other developed countries, the United States limits the amount of debt the government can borrow, regardless of any spending allocated by the legislature.
“America can breathe a sigh of relief,” Schumer said in remarks to the Senate.
’TIME IS A LUXURY’
Republicans had blocked passage of any debt limit increase until they locked in some wide-ranging spending cuts in a move they said would begin addressing a rapidly escalating national debt.
Biden instead pushed for tax increases on the wealthy and corporations to help address the growing debt. Republicans refused to consider any sort of tax hikes.
Both parties walled off the sprawling Social Security and Medicare retirement and health care programs from cuts, and McCarthy refused to consider reducing spending on the military or veterans.
That left a somewhat narrow band of domestic “discretionary” programs to bear the brunt of spending cuts. In the end, Republicans won about $1.5 trillion in reductions over 10 years, which may or may not be fully realized. Their opening bid was for $4.8 trillion in savings over a decade.
Treasury technically hit its limit on borrowing in January. Since then it has been using “extraordinary measures” to patch together the money needed to pay the government’s bills.
Biden, Yellen and congressional leaders all acknowledged that triggering a default for lack of funds would have serious ramifications. Those included sending shock waves through global financial markets, possibly triggering job losses and a recession in the United States and raising families’ interest rates on everything from home mortgages to credit card debt.
The Republican-controlled House passed the bill on Wednesday evening in a 314-117 vote. Most of those who voted against the bill were Republicans.
“Time is a luxury the Senate does not have,” Schumer said on Thursday. “Any needless delay or any last-minute holdups would be an unnecessary and even dangerous risk.”
Among the amendments debated were ones to force deeper spending cuts than those contained in the House-passed bill and stopping the speedy final approval of a West Virginia energy pipeline.
COBBLED OVER WEEKS
Republican Senator Roger Marshall offered an amendment to impose new border controls as high numbers of immigrants arrive at the US-Mexico border. His measure, he said, would “put an end to the culture of lawlessness at our southern border.”
The Senate defeated the amendment, however. Democrats said it would strip away protections for child migrants and rob American farmers of needed workers.
Some Republicans also wanted to beef up defense spending beyond the increased levels contained in the House-passed bill.
In response, Schumer said the spending caps in this legislation would not constrain Congress in approving additional money for emergencies, including helping Ukraine in its battle against Russia.
“This debt ceiling deal does nothing to limit the Senate’s ability to appropriate emergency supplemental funds to ensure our military capabilities are sufficient to deter China, Russia and our other adversaries, and respond to ongoing and growing national security threats, including Russia’s evil ongoing war of aggression against Ukraine,” Schumer said.
The bill was cobbled together over weeks of intensive negotiations between senior aides for Biden and McCarthy.
The main argument was over spending for the next couple of years on discretionary programs such as housing, environmental protections, education and medical research that Republicans wanted to cut deeply.
The nonpartisan Congressional Budget Office estimated the bill would save $1.5 trillion over 10 years. That is below the $3 trillion in deficit reduction, mainly through new taxes, that Biden proposed.
The last time the United States came this close to default was in 2011. That standoff hammered financial markets, led to the first-ever downgrade of the government’s credit rating and pushed up the nation’s borrowing costs.
There was less drama this time as it became clear last week that Biden and McCarthy would find a deal with enough bipartisan support to get through Congress.
US Congress averts historic default, approves debt-limit suspension
https://arab.news/pdj4g
US Congress averts historic default, approves debt-limit suspension
- The Treasury Department had warned it would be unable to pay all its bills on June 5 if Congress failed to act by then
- Biden was directly involved in negotiations on the bill with House Speaker Kevin McCarthy
Pakistani FM ‘hopeful’ flood aid promises will be fulfilled
- Pakistan was devastated by floods last year that inflicted over $30bn in damage, economic losses
- While donors have pledged around $10bn in aid, it has yet to be disbursed
NEW YORK: Pakistan is “hopeful” that pledged reconstruction funding to rebuild parts of the country damaged by floods last year will be disbursed soon, Foreign Minister Jalil Abbas Jilani said on Friday.
At a press conference during the UN General Assembly in New York, he told Arab News: “Pakistan is one of the worst affected as far as climate change is concerned because it has affected about 33 million people.
“One-third of the country was inundated with water, and about $30 billion worth of losses were suffered.”
Pakistan was devastated by the 2022 floods, which were the world’s deadliest since those in southern Asia in 2020.
About a month after last year’s disaster, Pakistan and other countries attending the UN Climate Change Conference in Egypt decided to establish the Loss and Damage Fund to assist countries in dealing with the effects of climate change.
Many donors have pledged funds to help Pakistan rebuild flood-affected areas. The Islamic Development Bank pledged more than $4 billion, the World Bank $2 billion and Saudi Arabia $1 billion.
“So far, there has been very little which has trickled down from the international community as far as the rehabilitation and reconstruction work that has to be carried out. Pakistan is doing that from its own resources,” Jilani told Arab News.
“Our banks are issuing loans on easy terms to all those people who were affected. But then obviously, there are limits to what the banking industry can do.
“This is the kind of situation we’re in. I think we’re hopeful that most of the promises which were made by the donors will be fulfilled shortly.”
Regarding foreign policy, Jilani described the formation of new blocs and rivalries in the Asia-Pacific region as “a very uncomfortable situation” for Pakistan.
“Asia-Pacific has been a very peaceful region, a prosperous region, and it has made great economic strides in the last 40-50 years. Any tension within the Asia-Pacific region, from our point of view, is certainly not good for peace and stability in the region,” he said, adding that Pakistan prioritizes good relations with all countries, specifically mentioning China and the US.
When asked about Islamabad’s potential to confront the Pakistani Taliban, which operates along the border with Afghanistan, Jilani said: “Afghanistan is a sovereign country. Pakistan follows a policy of non-interference … while respecting the sovereignty of other countries.
“At the same time, we have expectations that the Afghan side would take action against all groups who are violating Afghanistan’s soil to carry out terrorist activities against other countries.”
Jilani added that during a meeting between the foreign ministers of China, Pakistan and Afghanistan in May, “there was a reiteration of this commitment by the Afghan side that they won’t allow Afghan soil to be used against other countries.”
Jilani also praised Pakistan’s commitment to democracy and free elections. “We’re a democratic country. There’s absolutely no doubt about it. In Pakistan, when parliament has completed its full term, it’s a constitutional requirement that there’s a caretaker setup which is meant to ensure neutrality in the next elections,” he said.
“This is meant to ensure that the elections are free and fair, and is meant to ensure that people are able to participate in the voting process without any violence.”
Jilani said Pakistan is heavily involved in efforts to tackle Islamophobia in Europe, and had made a case for the criminalization of religious-based hate speech in the Organisation of Islamic Cooperation’s Contact Group on Muslims in Europe.
“We also appreciated the introduction of a bill by the government of Denmark which would criminalize such offenses, either the burning of holy books or insulting the prophets of any religion. I think this is a good step they’ve taken,” he added, saying he is hopeful that if such a bill passed in Demark, other European nations may follow suit.
Blinken calls on India to cooperate on Canada killing probe
- Canadian Prime Minister Justin Trudeau said Monday that Indian agents played a role in the June murder of Hardeep Singh Nijjar, a Canadian citizen, near Vancouver
NEW YORK: US Secretary of State Antony Blinken called on India Friday to cooperate with Canada and ensure “accountability” over the killing of a Sikh separatist, after Ottawa accused New Delhi of involvement.
Blinken said the United States has been in touch both with India, with which it has warming ties, and Canada, a close ally which expelled an Indian diplomat earlier this week.
“We want to see accountability. And it’s important that the investigation run its course and lead to that result,” Blinken told reporters in New York, where he was taking part in the UN General Assembly.
“We would hope that our Indian friends would cooperate with that investigation as well,” Blinken said.
Blinken, without commenting directly on the substance of the allegations, said that the United States took “very, very seriously” incidents of “transnational repression.”
“I think it’s important, more broadly, for the international system that any country that might consider engaging in such acts not do so,” he said.
Canadian Prime Minister Justin Trudeau said Monday that Indian agents played a role in the June murder of Hardeep Singh Nijjar, a Canadian citizen, near Vancouver.
Trudeau on Thursday called on India to cooperate on the investigation.
Nijjar was wanted by India for alleged terrorism and conspiracy to commit murder. He was part of the Khalistan movement, which advocates a separate Sikh homeland and was crushed by Indian security forces in the 1980s.
India has come back swinging at Canada, reducing its diplomatic staff and stopping visa services.
Pakistan’s ‘first priority’ is countering terrorism from Afghanistan, PM tells UNGA
- Anwaar-ul-Haq Kakar welcomes Saudi-Iranian normalization, calls for two-state solution for Palestine
- Premier says global powers should convince India to accept offer of mutual restraint on strategic weapons
ISLAMABAD: Pakistan’s caretaker Prime Minister Anwaar-ul-Haq Kakar on Friday called for action to halt militant attacks from neighboring Afghanistan, endorsed Saudi Arabia and Iran’s diplomatic rapprochement, and advocated a two-state solution as the path to enduring peace in Palestine.
Kakar achieved a historic milestone as the first caretaker prime minister of his country to address the annual United Nations General Assembly session in New York, where he tackled global issues ranging from extremist violence and relations with India to the escalating challenges of climate change and Islamophobia.
“Pakistan’s first priority is to prevent and counter all terrorism from and within Afghanistan,” he told representatives of UN member states. “Pakistan condemns the cross-border attacks by the TTP (Tehreek-e-Taliban Pakistan), Daesh and other groups operating from Afghanistan.”
The prime minister’s statement follows a dramatic surge in militant violence in Pakistan, mainly in regions bordering Afghanistan, since the Taliban’s return to power in Kabul in August 2021.
Attacks in the first half of this year rose by 80 percent compared with the same period last year, according to statistics compiled by the Pakistan Institute for Conflict and Security Studies.
“We have sought Kabul’s support and cooperation to prevent these attacks,” the prime minister said. “We are also taking necessary measures to end this externally encouraged terrorism.”
Kakar reiterated his country’s position that peace in Afghanistan was a “strategic imperative” for Pakistan, while sharing international concerns with respect to its neighbor, particularly those related to the rights of women and girls.
“We advocate continued humanitarian assistance for the destitute Afghan population in which Afghan girls and women are the most vulnerable, as well as the revival of Afghan economy and implementation of the connectivity projects with Central Asia,” he said.
Discussing Pakistan’s relations with its nuclear-armed neighbor, the prime minister said his country desired “peaceful and productive” relations with all neighbors, including India.
“Global powers should convince New Delhi to accept Pakistan’s offer of mutual restraint on strategic and conventional weapons,” he said, adding that Kashmir provided the key to peace between the neighboring states.
Pakistan and India both rule parts of the disputed Himalayan region while claiming it in full. They have fought two wars over the mountainous territory, and their forces frequently exchange fire across a 740 km (466 mile) line of control, the de facto border separating the two parts of Kashmir.
“We must counter all terrorists without discrimination, including the rising threat posed by far-right extremist and fascist groups, such as Hindutva-inspired extremists threatening genocide against Indian Muslims and Christians,” he said.
“We also need to oppose state terrorism, address the root cause of terrorism, such as poverty, injustice and foreign occupation, and distinguish genuine freedom struggles from terrorism.”
The prime minister proposed the creation of a committee of the general assembly to oversee the balanced implementation of all “four pillars of the global counter terrorism strategy.”
He also applauded the normalization of relations between Saudi Arabia and Iran, while commenting on the overall strategic situation in the Middle East.
“Pakistan welcomes the progress made toward ending the conflicts in Syria and Yemen. In particular, we warmly welcome the normalization of relations between the Kingdom of Saudi Arabia and the Islamic Republic of Iran,” he said.
Focusing on the Palestine issue, Kakar mentioned continued “Israeli military raids, air strikes, expansion of settlements and eviction of Palestinians.”
He said: “A durable peace can be established only through a two-state solution, and establishment of a viable and contiguous Palestinian state within the pre-June 1967 borders, with Al-Quds as its capital.”
The prime minister also mentioned the “age-old phenomenon” of Islamophobia, saying the problem had grown dramatically in the wake of the Sept. 11 attacks in the US, and could be seen in the negative profiling of Muslims and public burnings of the Qur’an.
“The narratives advocating a clash of civilizations have done considerable harm to humanity’s progress,” he said. “Such ideas have bred extremism, hatred and religious intolerance, including Islamophobia.”
Kakar welcomed legislation initiated by Denmark and contemplated by Sweden to ban desecration of the Islamic scripture.
“Pakistan and the OIC (Organization of Islamic Cooperation) countries will propose further steps to combat Islamophobia, including the appointment of a special envoy, creation of an Islamophobia data center, legal assistance to victims and an accountability process to punish Islamophobic crimes,” he said.
Discussing the climate change issue, Kakar said Pakistan looked forward to fulfilling the climate commitments made at COP28 by developed countries to provide over $100 billion in annual climate finance.
“Pakistan’s triple food finance fuel challenge is a prime illustration of the impact of COVID conflict and climate on developing countries,” he said, adding that Pakistan was one of the countries worst hit by climate change.
Flooding in Pakistan last year submerged one-third of the country, killed 1,700 people, displaced over 8 million others, destroyed vital infrastructure and caused over $30 billion damage to the economy, Kakar said.
“We are gratified by the commitment of over $10.5 billion for the Pakistan’s comprehensive plan for recovery, rehabilitation, reconstruction with resilience,” he said.
“Specific projects are being submitted to ensure timely funding. I hope our development partners will accord priority to the allocation of funds for our recovery plan which costs $13 billion.”
Pope Francis urges Europe to save migrants at sea
- As European nations have sought to shift responsibility for taking care of people arriving by sea, the pope singled out "the disinterest that, with velvet gloves, condemns others to death"
- "People who are at risk of drowning when abandoned on the waves must be rescued," he said
MARSEILLE, France: Pope Francis on Friday said European governments have a duty to rescue asylum-seekers who take to sea to escape conflict, warning against a "paralysis of fear, on the first day of a visit to the French Mediterranean city of Marseille.
Streets and monuments were decked out in the yellow and white colours of the Vatican for the first visit by a pope to France's second-largest city in 500 years, where 100,000 people are expected to turn out to greet the pontiff in his "popemobile" on Saturday.
The 86-year-old is visiting to take part in a meeting of Mediterranean-area Catholic bishops and young people -- but his trip comes at a politically sensitive time.
As European nations have sought to shift responsibility for taking care of people arriving by sea, the pope singled out "the disinterest that, with velvet gloves, condemns others to death".
"People who are at risk of drowning when abandoned on the waves must be rescued," he said at the hilltop Basilica of Notre-Dame de la Garde, overlooking the glistening Mediterranean waters.
In remarks dedicated to migrants lost at sea, he said "it is a duty of humanity, it is a duty of civilisation" to save people in danger, warning governments against the "fanaticism of indifference" and "paralysis of fear".
The Pope had earlier been greeted by France's Interior Minister Gerald Darmanin, who has vowed the country will not take in any of a recent wave of migrants arriving on the Italian island of Lampedusa, declaring France "wants a position of firmness".
A surge in migrant boats arriving from North Africa on the tiny Italian island last week triggered outrage in Italy and a heated debate across Europe over how to share responsibility for the influx.
The desperate conditions that cause many people to leave their homes for a new life, and the risks they take to do so, have been a key theme during Francis' decade as head of the Catholic Church.
In unprepared remarks added at the end of his speech the pope thanked NGOs rescuing migrants in danger at sea and condemned efforts to prevent their activity as "gestures of hate".
"We hope this will have an impact and people will stop criminalising what we're doing, on the contrary that more resources will be deployed to save more people," Fabienne Lassalle, deputy director of SOS Mediterrannee, told AFP.
The aid group has been running rescue missions in the Mediterranean since 2015, with its ship the Ocean Viking sometimes held in port by authorities or denied permission to dock after pulling people from the water.
Appearing frail but alert and cheerful, Francis mostly got around by wheelchair on the first day of his visit, standing only at select moments such as when greeted by Prime Minister Elisabeth Borne on the airport tarmac.
He was driven him through the Old Port of Marseille in a distinctive Fiat 500L car, where he waved from the open window as crowds lined the streets.
But he used the wheelchair again to get around the Basilica of Notre-Dame de la Garde, a symbolic monument overlooking the city, for a prayer service with local clergy, and the car was brought as close as possible for his departure after his remarks on sea rescues.
Ahead of what is his 44th overseas trip, Francis acknowledged this month that his papal voyages are not as easy as they used to be.
Pope Francis underwent hernia surgery in June, less than two years after having colon surgery, and routinely uses a wheelchair because of a troublesome knee.
Despite the decline in France of Catholicism, the once dominant faith, the pope's visit has sparked huge enthusiasm, with almost 60,000 people expected at a mass on Saturday afternoon.
For Joseph Achji, a 25-year-old Syrian Christian originally from Aleppo, the pope's visit is a "chance of a lifetime".
On Saturday morning, Francis will take part in the closing session of the "Mediterranean Meetings" event.
As well as migration, it will cover issues such as economic inequality and climate change -- also themes close to the pope's heart.
On Saturday afternoon, Francis will lead a mass at the Velodrome stadium, with French President Emmanuel Macron among those due to attend.
Macron's attendance has sparked controversy among left-wing politicians in the officially secular country.
Some right-wing politicians have criticised the pope's stance on migrants -- but Marseille mayor Benoit Payan said the pontiff "has a universal message... of peace".
EU to start paying Tunisia under migration pact
- Tunisia will get 105 million euros to curb irregular migration, 150 million euros in budgetary support and 900 million euros in long-term aid
- EU lawmakers, the bloc’s ombudsman and migrant assistance charities have questioned whether the deal with Tunisia meets European rights standards
Brussels: The EU is to start releasing money to Tunisia under a pact aimed at stemming irregular migration from the country, the European Commission said Friday.
A first payment of $135 million will be disbursed “in the coming days,” a commission spokeswoman, Ana Pisonero, said.
EU lawmakers, the bloc’s ombudsman and migrant assistance charities have questioned whether the deal with Tunisia meets European rights standards.
Under the agreement, a memorandum of understanding signed by commission chief Ursula von der Leyen in July, Tunisia will get 105 million euros to curb irregular migration, 150 million euros in budgetary support and 900 million euros in long-term aid.
Tunisia is one of the main launching points for boats carrying migrants trying to cross the Mediterranean for Europe, with most heading for Italy, in particular its island of Lampedusa.
The EU deal, strongly supported by Italy’s far-right government, aims to bolster Tunis’s coast guard to prevent boats leaving its shore. Some of the money also goes to UN agencies assisting migrants.
Pisonero said that, of the 127 million euros to be “swiftly” disbursed, 42 million euros came under the migration aspect of the July deal.
The rest was for previously agreed programs, with 60 million euros to help Tunisia with its budget.
The North African country is struggling with high debt and poor liquidity, and has suffered bread and power shortages.
Its hopes of accessing a $1.9-billion bailout from the International Monetary Fund are hobbled by a refusal to undertake IMF-mandated reforms.
Tunisian President Kais Saied has been criticized in Brussels for increasingly authoritarian rule.
The EU ombudsman, Emily O’Reilly, last week demanded the commission explain how the pact with Tunisia will not breach human rights standards.
MEPs have also raised that question, pointing out that hundreds of sub-Saharan migrants in Tunisia had allegedly in recent months been taken to the desert near the Libyan border and left to fend for themselves.
Tunisia has bristled at the criticism, and last week barred entry to a European Parliament fact-finding delegation.
