Thursday, April 7, 2011

Barack Obama locked in last minute budget talks with congressional leaders


Barack Obama was locked in crisis budget talks with congressional leaders as the US faces the prospect of a costly government shutdown.

The shutdown would see 800,000 workers asked to stay at home and could cost taxpayers more than $100 million (£61 million) a day.

Mr Obama called for a “sense of urgency” as America sought to avoid the first shutdown since 1996 when Bill Clinton was president.

Failure to reach a deal by midnight on Friday would mean that Washington would essentially run out of money.

The budget battle is a clash between resurgent Republicans, who scored a huge win in last year's midterm elections, and Mr Obama's Democrats over the size of government, debt and deficits.

All-night talks among aides failed to break the deadlock on Wednesday so Mr Obama summoned Representative John Boehner, Speaker of the House of Representatives and a Republican, and Senator Harry Reid, a Democrat and Senate Majority Leader, for the second time in just over 12 hours. (read more)

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