US President Barack Obama has called Congressional leaders to talks at the White House to try to stop the US falling over the “fiscal cliff”.
Republicans and Democrats have only four days to reach an agreement before hundreds of billions of dollars of tax rises and spending cuts take effect.
Over time the loss of income would have a deleterious effect on the US economy.
Analysts say sliding over the “cliff” could tip the US into recession and set back the global economic recovery.
President Obama cut short his holiday in Hawaii to resume the negotiations, and is due to host the White House talks at 15:00 EST (20:00 GMT).
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