WASHINGTON (AFP) — Democrats returning to Congress are clamoring for legislation to stem the economic crisis, but have little hope in face of stiff opposition from Republican lawmakers and the White House, analysts say.
There is no "realistic chance of getting a package for the automakers nor is there much of a chance of getting a large stimulus package," said Thomas Mann, a policy expert at the Brookings Institute think tank.
"It's possible that they might put together a simple, lean bill that includes extending unemployment benefits, one or two others things, but that's the most.
"Unless there's an agreement with the president, I don't expect much to happen," he said of next week's co-called lame-duck session in Congress.
Democrats riding high after bolstering their majority in the November 4 elections had called for a new stimulus package for American taxpayers that topped 100-billion dollars, along with additional bailout authority to help struggling automakers and increased infrastructure spending.
But faced with the reality, they scaled back their proposals on Friday, calling instead for support for expanded unemployment benefits and a second 25-billion-dollar package to protect struggling US automakers.
Democrats blamed opposition from Republicans and President George W. Bush for their revised plans, but are set to push these rescue measures in the week-long session starting Monday.
President-elect Barack Obama acknowledged Saturday the US economy was already in "recession" and tasked his incoming administration with alleviating the financial strain on Americans if lawmakers are unable to do so.
"If Congress does not pass an immediate plan that gives the economy the boost it needs, I will make it my first order of business as president," Obama said in the Democratic Party's weekly radio address.
"The need for action is clear and urgent," said Democrat House Speaker Nancy Pelosi in a statement Thursday, complaining "the administration is failing to move aggressively to stem the tide of foreclosures and refusing to use the authority it has been given by Congress to help homeowners."
But Larry Sabato, political science professor at the University of Virgina, was equally pessimistic about the chances of any concrete action.
"There's a chance they can do it, but right now it doesn't appear likely," he said.
"Lame-duck sessions almost always fail," he added, referring to the outgoing Congress meeting before lawmakers officially relaunch the session in January.
Pelosi had backed her counterpart in the US Senate, Majority Leader Harry Reid, in calling for a economic rescue bailout for the beleaguered auto industry.
But the White House in Saturday also firmly rejected pumping any if the 700-billion dollars bailout into the auto industry, which was given 25 billion dollars in loan guarantees in September.
"We want to see legislation passed at this week's lame duck session that uses existing funds intended for the automakers that will help them become viable for the long run," said White House spokeswoman Dana Perino.
She said the money allocated under the Wall Street bailout plan to help stem the economic crisis needed to be conserved for "its intended purpose, stabilizing and strengthening our financial system."
But Democrat lawmakers are likely to keep up the pressure.
"Around the world, other countries are taking action to address this global economic crisis. Stimulus packages have already been announced in Japan, China, and Germany, and other announcements are expected next week," Pelosi said.
In February US lawmakers approved a first stimulus package which handed out tax rebates to US citizens in a bid to spur the flagging the economy.
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