German Finance Minister Christian Lindner told CNBC he wants the U.S. to avoid adding more problems to the global economy.
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German Finance Minister Christian Lindner wants U.S. lawmakers to be “mature” in debt-ceiling talks to avoid further headwinds for the global economy.
The U.S. Congress is trying to reach a compromise on the debt ceiling – the maximum amount that both houses of Congress will allow the federal government to borrow. Democratic leaders want to raise the cap, but Republican lawmakers are calling for agreement on spending cuts before approving anything.
Time is running out for a deal, with U.S. Treasury Secretary Janet Yellen warning earlier this month that without a deal, the world’s largest economy could default on June 1.
“There is a lot of uncertainty, we have to stabilize the economy, we have to fight inflation further, everyone has to be responsible in this situation, we have to avoid further risks, especially risks that we can decide,” German Finance Minister Christian Lindner said on the sidelines of a G7 meeting in Japan.
“I can’t comment on domestic politics in other countries, but I hope everyone matures in this situation and avoids further risks to global economic development,” he told CNBC’s Martin Soong.
Yellen told a news conference at the Group of Seven meeting earlier Thursday that a U.S. default would threaten the global economy. U.S. President Joe Biden has previously warned that disagreements with Republicans over the debt ceiling could lead to a recession.
“We have serious risks, we have high levels of uncertainty, we still have high inflation, we haven’t gotten back to the growth we need globally, so in this situation, no one will understand that the U.S. Are domestic politics leading to more trouble for the global economy,” Lindner said.
Eurogroup President Donoghue also told CNBC at the G-7 meeting that this is an “important” development for the global economy. “We understand the sensitivity of this issue in American politics, but at the same time, it is critical that this issue be resolved, not just for the United States, but for the economic stability of our world,” he said .