European Central Bank (ECB) President Mario Draghi has warned that the shutdown of the US government could threaten not only the United States but also the global economy if it continues.
The federal government shutdown “is a risk if it is protracted… it would be a risk not only for the US, but also the world economy,” Draghi said on Wednesday.
“At the present time, the impression one has is that it will not be so. If it were to be protracted, it would certainly pose a risk for the recovery in the US and the world. And this is clearly on our minds,” he added.
The US government began a partial shutdown on Tuesday after the Republican-led House of Representatives and the Democratic-led Senate did not agree on an emergency spending bill to fund the government.
The lawmakers remain at loggerheads over the budget, with Democrats refusing to give in to Republican demands for cuts in President Barack Obama’s healthcare reform — dubbed Obamacare.
The stalemate that has left more than 700,000 government workers furloughed, halted many government services and closed 400 national parks and monuments.
On Tuesday, Obama criticized Republicans for the shutdown and said Republicans should not be able to hold the entire economy “hostage.”
“They’ve shut down the government over an ideological crusade to deny affordable health insurance to millions of Americans,” he said during his speech in the White House Rose Garden.
However, Republicans said Obama could not complain about the impact of the shutdown while refusing to negotiate.
“The White House position is unsustainably hypocritical,” said Michael Steel, a spokesman for Boehner.
A new poll conducted by Reuters/Ipsos showed that 24 percent of Americans blamed Republicans for the shutdown, while 19 percent blamed the president or Democrats. Another 46 percent said everyone was to blame.
The current crisis comes a few weeks before a mid-October deadline over raising the government’s $16.7 trillion debt ceiling.
US Treasury Secretary Jack Lew has warned that he will begin running short of money to pay the country’s bills unless Congress acts by October 17.
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Copyright: Press TV