A deal has been reached between both houses of Congress over US President Barack Obama’s economic stimulus plan.
The package, now worth 611 billion euros, includes tax cuts and spending aimed at rescuing the US economy. Harry Reid, US Senate Majority Leader said: “Every economic indicator and every passing day reminds us how we must act robustly and quickly. The differences between the Senate and House versions we’ve resolved.” The bill should create 3.5 million jobs, however there are likely to be some changes in the plan. Republicans wanted something half the size which included tax cuts, while many Democrats wanted more money spent on America’s infrastructure. John Boehner, US House Minority Leader said: “I’m very disappointed. Very disappointed because it won’t do what the American people expected it will do and that is create and preserve jobs in our country.” Meanwhile US stock markets ended the day slightly higher following the announcement, which came a day after the Senate approved the original version of the bill. Obama has been campaigning hard for the plan in the last few days, claiming it was essential to avoid further economic catastrophe.