The Republican Speaker of the House of Representatives, Kevin McCarthy, announced last Saturday evening (in the early hours of today Greek time) that he had reached an agreement in principle with President Joe Biden to increase the borrowing limit of the American federal government, adding that the required votes are expected to take place on Wednesday 31 May.

The agreement ends the political deadlock of the past months.

However, it is described in terms that do not seem absolute, and without celebration, a reflection of the extremely bitter tone of the negotiations as well as the difficulties that may be encountered in passing it in Congress in order to prevent in time the declaration of an unprecedented default by the US in the first days of June.

“I just got off the phone with the president (…) After he wasted time refusing to negotiate for months, we reached an agreement in principle worthy of the American people,” Mr McCarthy said via Twitter.

According to the Reuters news agency, the agreement will raise the debt limit ($31.4 trillion, a world record) for two years while at the same time providing for restrictions on public spending, excluding those for the armed forces and veterans, while apparently satisfying some demands put forward by the Republicans, such as that those who receive welfare assistance from the US state, especially food assistance, work in exchange for it.

Messrs. Biden and McCarthy had a one-and-a-half-hour phone conversation Saturday afternoon about the deal. “We still have work tonight to finish drafting it,” Mr. McCarthy told reporters on Capitol Hill. He added that the writing of the text is expected to be completed today, Sunday, then to be discussed again and voted on in Congress on Wednesday.

If approved on time, the deal would avert the potentially devastating US and global economic default that Treasury Secretary Janet Yellen has warned would start around June 5 if Congress not increase or suspend the debt limit.