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Relief short-lived, bigger cuts needed to resolve U.S. debt problem

08-03-2011 08:48 BJT

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A last-minute deal on the US debt ceiling brings welcome relief, but further negotiations involving much bigger cuts will be needed to resolve America's debt problem. That according to the chief of the OECD group of industrialized nations.

Relief in financial markets over an end to the gridlock was short-lived - it quickly turned to concern that the deal is not enough to avoid a damaging downgrade of the top-notch U.S. debt rating. The Democratic-controlled Senate is expected to approve the deal in a vote, and then Obama would sign the bill into law shortly afterwards.

The final deal is far from a 4 trillion US dollar deficit-reduction package including revenue increases that U.S. President Barack Obama and House Speaker John Boehner appeared close to clinching just over a week ago.

Angel Gurria, Secretary General of OECD said, "There is a general sense of relief because an agreement was achieved, this allows time, and of course there is going to be other chapters in the next few months, having to do with further reductions in spending and there will be further negotiations I'm sure. But clearly we've now overcome a very important hurdle that we never really thought would become so important and so urging because we never thought it would get all the way down to the wire, till the last few hours."

Editor:Li Wanran |Source: CNTV.CN

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