–Senate Majority Leader Reid Says Senate Will Return July 5
–Sen. Reid: ‘So Much To Do’ to Fix Economy, Cut Deficit
–Reid: Failure To Hike Debt Ceiling Would Cause ‘Full Blown Recession’
–Senate Budget Chief Conrad Vows To Unveil Senate Dem Budget Next Week

By John Shaw

WASHINGTON (MNI) – Senate Majority Leader Harry Reid announced
Thursday that the Senate’s Fourth of July recess next week will be
canceled, with senators being summoned back to Washington on July 5 for
an afternoon vote.

“We have work to do,” Reid said on the Senate floor. “There’s still
so much to do to put Americans back to work, to cut our deficit and
(get) our economy back to work … . That moment is too important, the
obstacle is too steep and the time is too short to waste even a moment.”

The Senate’s change is schedule is a clear response to the sharp
criticisms by President Obama about the recent congressional schedule.

At his news conference Wednesday, Obama urged Congress to stay in
Washington and hammer out a deficit reduction and debt ceiling
agreement.

“If the end of this week we have not seen substantial progress, we
are going to have to start having things canceled … and stay till we
get this done,” Obama said.

While Reid adjusted the Senate schedule, many observed that it has
been the House’s pattern of three weeks in Washington and then one week
off that has made budget negotiations so difficult over the past several
months.

The House has been off this week and is scheduled to be in a recess
the week of July 18. It seems likely that House GOP leaders will cancel
that recess if the debt limit impasse continues.

In his remarks, Reid said failure to pass the debt ceiling increase
in a timely way will throw the U.S. into a “full-blown recession” and
would likely lead to a “worldwide depression.”

Reid continued to blast congressional Republicans for failing to
work on a debt ceiling increase in good faith.

“Republicans walked away from the negotiations,” he said, referring
to the decision of House Majority Leader Eric Cantor last week to leave
the budget talks hosted by Vice President Biden.

“They (Republicans) did it in order to protect tax breaks for
millionaires and billionaires. That’s all it is,” Reid said.

Democrats in the Biden budget talks argued that additional revenues
should be part of the discussion. Republicans have said tax increases
should not be part of the agenda.

The Biden talks sought 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 Timothy Geithner has said Congress must pass
legislation increasing the debt ceiling by August 2.

In comments on the Senate floor Thursday, Sen. Chuck Schumer said a
“grand bipartisan deal is possible” if Republicans drop their demand
that no revenue increase be part of the package.

Senate Budget Committee Chairman Kent Conrad has said he is ready
to unveil next week a Senate Democratic budget alternative. Conrad has
said that his plan will be based on the work of the Simpson-Bowles
commission, cutting the deficit by $4 trillion over a decade.

House Republicans passed their budget plan in April.

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

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