–Member of Biden Group Says Parties Are Working in ‘Good Faith’
–Rep. Van Hollen: Should Focus On Debt Ceiling Hike Until End of 2012
–Seek ‘Some Sense of Where We Are’ By This Week
–If All Goes Well, ‘Agreement In Principle’ By July 1

By John Shaw

WASHINGTON (MNI) – Rep. Chris Van Hollen, a Democratic member of
the budget negotiations led by Vice President Joe Biden, Tuesday that
the day’s budget talks delved into the “big issues” that need to be
resolved if a budget accord is to be achieved.

Speaking to reporters after the meeting, Van Hollen said the Biden
group had a “very serious conversation” about difficult spending issues.
He also said that he is convinced that dealing with tax expenditures
must be part of the discussions.

Van Hollen dowplayed the likelihood that a budget accord will be
secured this week, saying that by the end of this week policymakers
“should have an idea” if a budget agreement is possible.

By the end of the week’s discussions, Van Hollen said the
negotiators should have “some sense of where we are” regarding the
effort for a deficit cut agreement this summer.

Van Hollen said that if budget talks go well this week and into
next week it might be possible to have “an agreement in principle” by
the end of the month.

“We’re working in good faith,” he said.

The Biden group will also meet place Wednesday, Thursday and
possibly Friday.

Tuesday’s talks lasted only several hours because Biden had an
early evening speaking engagement in Chicago.

Van Hollen downplayed suggestions that Congress might be prepared
to pass a series of short-term debt ceiling extensions this summer.

He said the Biden talks are focused on assembling a package that
would allow for Congress to consider a debt ceiling increase
sufficiently large to extend until after the 2012 November elections.

Various lawmakers and administration officials have put this number
at $2.4 trillion.

The Biden talks are seeking a deficit reduction package that can be
developed to coincide with this summer’s vote on debt ceiling
legislation.

The U.S. has already reached its $14.29 trillion debt ceiling.
Treasury Secretary Tim Geithner has said that Congress must pass
legislation increasing the debt ceiling by August 2.

Biden is negotiating with House Majority Leader Eric Cantor, Kyl,
Senate Appropriations Committee Chairman Dan Inouye, Senate Finance
Committee Chairman Max Baucus, Assistant House Minority Leader Jim
Clyburn and Van Hollen, the top Democrat on the House Budget Committee.

The administration is represented by Biden, Treasury Secretary Tim
Geithner, White House budget director Jack Lew and the director of the
National Economic Council Gene Sperling.

** Market News International Washington Bureau: (202) 371-2121 **

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