Obama under pressure to avoid "fiscal cliff"

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Obama under pressure to avoid "fiscal cliff"

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After the highs of victory, and a triumphant return to the White House,today it’s back to business for Barack Obama.

And first on his to-do list is the so-called “fiscal cliff.” This mix of tax rises and spending cuts, is due to happen at the start of next year,unless a deal can be struck with Republicans.

Today, Republican Speaker of the House of Representatives, John Boehner, appeared to offer to work with President Obama:

“There is a mandate in yesterday’s results, it’s a mandate for us to find a way to work together on solutions to the challenges that we all face as a nation. And my message today is not one of confrontation, but one of conviction.”

Obama must now successfully negotiate with Republicans over taxes and the deficit. Failure to do so, it’s predicted, could crush the US economy and have knock-on effects around the globe.