US Budget Compromise: Advances Finally Made

After lengthy negotiations, the representatives of the main parties have agreed on a budget compromise, but only by sailing around the most difficult issues and changing as little as possible.

That sounds familiar. But what signals a standstill in Austria demonstrates significant progress in the toxic politics of the U.S. If Congress approves the budget agreed upon between a Democratic Senator and a Republican Congressman, it would water down the worst consequences of the so-called “sequester” lawnmower method, with which government spending was finally cut, and support the weak economic situation. Above all, however, it would be a sign that Democrats and Republicans can actually work together when it is really necessary.

It is possible but unlikely that the right-wing conservative tea party group in the House of Representatives could still bring down the agreement. With the passage of the budget, all will be quiet on the budget front for the next two years. The debt limit will have to be raised again in two months; this is not part of the agreement, but the Republicans will hardly block it. They want to devote all their power to the fight against Obama’s flawed health care reform, with which they can damage the president domestically. However, this controversy leaves the economy quite cold.