It was two hours after the midnight deadline but the US Senate finally approved legislation to avoid the “fiscal cliff”.
The overwhelming vote stops most of the tax hikes and across-the-board spending cuts that were due to begin with the new year. No effects will be felt as Tuesday is a US public holiday.
The eleventh-hour deal was negotiated by Vice President Joe Biden and Senate Republicans. The measure now moves to the Republican-controlled House of Representatives which is expected to consider it later on Tuesday where analysts believe it could still face stiff challenges.
Without a deal around 600 billion dollars worth of automatic tax hikes and spending cuts will be triggered in the first days of the new year, threatening a new recession in the United States.
Copyright © 2013 euronewsMore about:
- 18:03 CET China-Brazil satellite launch fails, likely fell back to Earth
- 17:48 CET U.N. to inspect Libya’s uranium stocks amid worsening stability
- 17:33 CET Iran and six powers meet on steps to carry out nuclear deal
- 17:12 CET Syrian army retakes road needed to ship out chemical arms
- 17:06 CET Pentagon chief Hagel in Pakistan for talks on security, drones
- 16:57 CET Friend and foe, world leaders coming together for Mandela
- 16:46 CET Merkel’s conservatives back coalition deal despite doubts
- 16:42 CET New Italian centre-left leader pledges support to government