US debt crisis: Republicans abandon vote as deadline looms

29th July 2011

The Republican leader John Boehner humiliatingly failed to get even their own bill through the House, exposing deep divisions within their own party, adds the Guardian. He may try again today.

Conservative lawmakers say the plan remains short on spending cuts and lacks a constitutional amendment to force a balanced federal budget.

Stock markets are increasingly jittery about the lack of progress, while pressure is rising on the White House to make a new effort to broker a deal, after allowing Congress to take the lead for several days.

The decision not to vote on the plan on Thursday night does not mean it is doomed, reports the Financial Times (paywall). Republican politicians were expected to reconvene on Friday morning to discuss their next steps.

The main sticking point remains whether to extend the debt limit beyond the 2012 presidential election, which the White House prefers, or just for six months, as demanded by Republicans.

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