Way forward on US 'cliff' uncertain
2012-12-21 18:30
Washington - The task of picking up the pieces of the
"fiscal cliff" talks - and reassuring global markets that were shaky
on Friday - is likely to largely to President Barack Obama after the rebuke on Thursday
to his chief Republican negotiating partner, House Speaker John Boehner.
Boehner could not muster enough support from his fellow Republicans,
a majority in the US House of Representatives, to pass his bill called
"Plan B" that he had hoped to use to pressure Obama in talks to avert
the steep tax hikes and spending cuts slated to start taking effect in just 11 days.
Boehner abruptly pulled the measure that would have
raised taxes only on those earning $1m or more.
House members, heading to their districts for the
holidays, were instructed to be available on 48 hours notice if necessary.
With his power apparently weakened, Boehner scheduled a
news conference for 10:00 on Friday.
"They went from Plan B to plan see-you-later,"
Obama adviser David Axelrod said on MSNBC on Friday morning.
Global stock markets weakened on Friday and both the euro
and gold slipped as the new setback rattled investors' nerves. Most major stock
markets saw widespread selling as investors moved to traditional safe-haven
assets.
Democrats, the minority in the House, are now stepping up
efforts to gather some Republican votes for a Democratic bill passed by the
Senate months ago which would extend the expiring tax cuts to all but the
wealthy.
"What we'll have to do is figure out where that line
is that gives us those 218 votes" needed to garner a majority of the House
behind legislation, Democratic Representative Michael Burgess said on CNBC on
Friday.
"I believe we can and must take action before the
end of the year to prevent the fiscal cliff," Steny Hoyer, the second
ranking Democrat in the House, said in an MSNBC interview.
"Democrats are ready to work with Republicans to do
so."
Senate Minority Leader Mitch McConnell, who has
experience helping to forge deals when House Republicans are in disarray, is
likely to play a larger role now in attempting to rescue the situation along
with other Senate Republicans, who have been more receptive to compromising.
Sean West, a Eurasia Group analyst, said: "Boehner
didn't have a ton of good moves, and has even fewer now."
He said he thought Boehner was "either headed back
to the White House for a big deal or he's accepting whatever bipartisan
fallback is crafted by Senate leaders. Hard to see him coming back with another
partisan gambit."
