US debt 'supercommittee' fails on deficit plan

US: A US Congress "supercommittee" has failed to reach a deal to rein in the government's galloping deficits due to angry partisan battles over how best to revive the nation's sluggish economy.

The move confirmed widespread expectations that the 12-member committee would miss its goal to cut US deficits by $1.2 trillion over 10 years amid political feuds over tax hikes on the rich and cuts to social spending.

"We are deeply disappointed that we have been unable to come to a bipartisan deficit reduction agreement," co-chairs Democratic Senator Patty Murray and Republican Representative Jeb Hensarling said in a joint statement on Monday.

The deadlock was sure to fuel voter anger at gridlock in Washington one year before November 2012 elections in which President Barack Obama hopes to win a second term by painting congressional Republicans as zealous obstructionists.

Global financial markets reacted cautiously Tuesday with most stocks in Asia closing slightly down. Under the August law that created the panel, the US impasse triggers draconian automatic cuts to domestic and military spending come January 2013, unless lawmakers repeal that requirement or find an alternative deficit-cutting plan.

AFP