USA: US Senate votes for budget law

At the last minute, the US Congress took a big step towards averting an impending partial standstill of government business. The Senate passed a draft law for a transitional budget until December 3 on Thursday with 65 votes to 35. At least 60 votes were necessary for a majority.

It was expected that the House of Representatives would also vote on the draft on Thursday in order to put the budget regulation into effect shortly before a crucial deadline at midnight.

The new financial year in the USA starts this Friday. If no budgetary regulation has been adopted by then, parts of the state apparatus would be shut down. This means that some state employees would have to be given compulsory leave or work temporarily without pay. Such “shutdowns” occur more often in the USA.

Avoiding a “shutdown” does not mean that another crisis has yet been overcome. Treasury Secretary Janet Yellen warns that the US faces default if the debt ceiling is not raised by mid-October. The Republicans block themselves against this.

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