German Finance Minister Christian Lindner hopes US lawmakers will be “mature” on debt ceiling talks to avoid further headwinds for the global economy.
US Congress is trying to compromise on this credit limit — which refers to the maximum amount the two chambers allow the federal government to borrow. Democratic leaders want the cap raised but Republican lawmakers have called for spending cuts before anything is approved.
Time is running out for a deal, with US Treasury Secretary Janet Yellen warning earlier this month that without a deal, the world’s biggest economy could default. June 1st,
“There is a high level of uncertainty, we have to stabilize economic growth, we have to fight further inflation and in this situation everyone has to be responsible, we have to avoid further risks, especially those that are in our hands. are,” German Finance Minister Christian Lindner said on the sidelines of the G-7 meeting in Japan.
“I can’t comment on domestic politics in other countries, but I hope everyone is mature in this situation and avoids further risks to global economic growth,” he told CNBC’s Martin Soong.
Speaking at a news conference earlier Thursday, also at the G-7 meeting, Yellen said a US default would threaten the global economy. US President Joe Biden had earlier warned that there was a risk of recession due to differences with the Republican Party over the debt ceiling.
“We have serious risks, there is a high level of uncertainty, we still have high inflation rates, we are not yet back to the growth required globally and so, in this situation, nobody would understand that Will domestic US politics cause more trouble for the global economy,” Lindner said.
Eurogroup President Pascal Donohoe also told CNBC at the G-7 meetings that this is a “significant” development for the global economy. “We appreciate how sensitive this issue is in American politics, but at the same time the resolution of this issue is important, not only to the United States, but also to the economic stability of our world,” he said.