Plan aired to avoid default

Julian Harris
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REPUBLICAN Senate leader Mitch McConnell floated a “last choice” back-up plan for the US debt ceiling crisis late last night. McConnell’s emergency plan would see President Barack Obama forcing through a hike in the debt ceiling, without requiring the consent of Republicans.

The announcement was intended to reassure markets that the US would not default on its debts next month, McConnell said, yet also turned attention back onto the President. On Monday Obama blamed stalled talks on “ideological” lawmakers who are refusing to compromise.

McConnell’s complex plan would involve Obama listing planned spending cuts, but without passing them into legislation. The new measures would allow Obama to veto any Republican objections, leaving Democrats with enough votes in Congress to pass the debt extension through.