USA: Fiscal cliff looms at year’s end

(Vatican Radio) Negotiations in Washington aimed at averting the so-called "fiscal cliff" have reached a standstill, with just hours left for Democrats and Republicans to avoid massive public spending cuts and tax rises, due to kick-in on New Year's Day. Listen to our report:

After a weekend of non-stop discussion, the two sides are calling Vice President Joe Biden to help jump-start the talks.

In an interview broadcast on the NBC yesterday, President Obama blamed his Republican opponents for the deadlock.

But Mitch McConnell, the Republicans' leader in the US Senate, says it is the president who has failed to lead.

Congress must reach a deal by the end of the year to avert steep spending cuts and tax rises due to take effect. If they fail, taxes will significantly rise for most Americans. This has raised fears of reduced consumer spending triggering a US economic slowdown, which in turn would damage the global economy.