Outside US, ripple effects of budget battle feared

June 27th, 2015 12:46 am

First Posted: 10/2/2013

(AP) European Central Bank head Mario Draghi says that the U.S. government shutdown could pose a risk for the U.S. and global economic recoveries if it is dragged out.

Draghi said Wednesday the shutdown "is a risk if protracted," but the "the impression is that it won't be."

Asked if he thought the U.S. could default on some of its debt obligations in coming weeks, he said, "I don't."

Congressional Republicans and President Barack Obama are at loggerheads over raising the legal debt ceiling.

Earlier, top French government officials also expressed worries about the impact of the shutdown on Europe's fragile recovery.

Associated Press