US & Canada

World press reaction to US debt vote

International press reaction to the voting of the US bill to avert a US debt default.

Chinese press

Beijing's China Daily: "The agreement [on raising the US debt ceiling] is likely to avert default by Washington and it certainly is a relief for China... We still cannot rule out the possibility of a downgrade of the US credit rating if Washington fails to come up with a long-term and balanced solution to address its debt problem... For policy makers in Beijing, seeking alternative ways to invest the massive foreign exchange reserves and to reduce its rapid accumulation remain the crucial challenges." (Interview with Chen Daofu, director, Policy Research Centre, Financial Research Institute, State Council Development Research Centre)

Beijing's Global Times: "It is too early to cheer for this deal, since raising the debt ceiling simply means the US can now borrow itself into further debt... This does not seem a smart move. By using new debt to pay back the old, the US is sinking further into quicksand." (Editorial)

Russian press

Nezavisimaya Gazeta: "Naturally, the problems of the USA and the dollar as well as of the EU and the euro cannot but disturb Russia. As we know, it holds its currency reserves in dollars and euros. We should assume that our government is not leaving matters to chance and is taking steps against possible risks... [There is] one unfortunate thing that Russia does not need to fear: at least, it will not face a default in the next few days." (Article by Yevgeniy Grigoryev)

Moskovskiye Novosti: "America has changed its mind about having a Judgment Day... But the obvious inability to reach an agreement that was demonstrated by political forces in the US has had an equally damaging effect on the country... The image of the country as a responsible borrower has suffered most." (Article by Denis Voroshilov and Igor Kryuchkov)

German press

Sueddeutsche Zeitung: "State bankruptcy has been avoided, but the compromise announced by US President Barack Obama is flawed from an economic point of view. It does not resolve any of the real budgetary problems and some of its elements are even harmful to the economy." (Commentary by Nikolaus Piper)

Frankfurter Allgemeine Zeitung: "Since the tax reductions for all Americans introduced under Obama's predecessor Bush have been extended to the end of next year, state debt can be expected to become a bone of contention in the election campaign after all, over the issue of possible subsequent tax hikes. The reason is that the laborious compromise that has been found is more of a short-term bridging measure than a long-term solution to excessive US debt." (Commentary by Holger Steltzner)

French press

Le Figaro: "The compromise between Democrats and Republicans to raise the debt ceiling has given the markets no more than a temporary breathing space. Grey areas remain and prevent investors from showing any euphoria." (Article by Guillaume Guichard)

Le Nouvel Observateur: "In this political battle, President Obama's image as someone who is able to regulate the bipartisan consensus will have been tainted by the concessions made to the Republicans. The negotiations and the delay of the vote in the House of Representatives on Thursday 28 July announced by John Boehner, whose authority has been questioned, will have contributed to the unity of the Republican Party wavering, under the effect of the declarations of the Tea Party representatives who have succeeded in imposing their agenda to Washington." (Article by Judith Chetrit)

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