This article is from the source 'nytimes' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.nytimes.com/2014/03/26/world/europe/senate-democrats-drop-imf-reforms-from-ukraine-aid-package.html

The article has changed 6 times. There is an RSS feed of changes available.

Version 0 Version 1
Senate Democrats Drop I.M.F. Reforms From Ukraine Aid Package Democrats Drop Effort For Changes To Lender
(about 2 hours later)
WASHINGTON — Senate Democrats, bowing to united House Republican opposition, dropped reforms of International Monetary Fund governance from a Ukraine aid package on Tuesday, handing President Obama an embarrassing defeat as he huddled in Europe with allies who have already ratified the changes.WASHINGTON — Senate Democrats, bowing to united House Republican opposition, dropped reforms of International Monetary Fund governance from a Ukraine aid package on Tuesday, handing President Obama an embarrassing defeat as he huddled in Europe with allies who have already ratified the changes.
The monetary fund language would have enlarged the Ukraine loan package while finally ratifying changes dating to 2010 that only the United States has opposed. Mr. Obama himself negotiated those reforms, and European allies conferring with him on Ukraine have been pressing for American action.The monetary fund language would have enlarged the Ukraine loan package while finally ratifying changes dating to 2010 that only the United States has opposed. Mr. Obama himself negotiated those reforms, and European allies conferring with him on Ukraine have been pressing for American action.
But the need for speed on loans and direct assistance to Ukraine overcame the White House’s desire for a fight. Senator Harry Reid of Nevada, the Senate majority leader, said he was taking his lead from Secretary of State John Kerry, who had signaled that the administration would fight for the monetary fund language separately. But the need for speed on loans and direct assistance to Ukraine overcame the White House’s willingness for a fight. Senator Harry Reid of Nevada, the majority leader, said he was taking his lead from Secretary of State John Kerry, who had signaled that the administration would push for the monetary fund language separately.
Mr. Reid said the package should pass the Senate by Wednesday. Mr. Reid said the package should pass the Senate by Thursday.
“Obviously, politics don’t stop at the water’s edge on this issue,” said Senator Robert Menendez, Democrat of New Jersey and chairman of the Senate Foreign Relations Committee, denouncing the Republican stance on the issue. “Obviously, politics don’t stop at the water’s edge on this issue,” said Senator Robert Menendez, Democrat of New Jersey and chairman of the Senate Foreign Relations Committee, denouncing the Republican stance.
The governance changes would raise the borrowing limit of countries like Ukraine at the multilateral lending institution, while giving more authority to emerging economic heavyweights like China, Brazil — and Russia. The Obama administration painted them as vital to a Ukraine aid package, but Republicans were never convinced.The governance changes would raise the borrowing limit of countries like Ukraine at the multilateral lending institution, while giving more authority to emerging economic heavyweights like China, Brazil — and Russia. The Obama administration painted them as vital to a Ukraine aid package, but Republicans were never convinced.
Some conservatives oppose the changes as a lessening of American authority at the fund, although Washington would retain veto power. But Republican leaders saw them more as a bargaining chip and were pressing to swap the reforms for an agreement to delay final Internal Revenue Service regulations on political groups that conceal the name of their donors by incorporating as tax-exempt “social welfare” organizations. Some conservatives oppose the changes as a lessening of American authority at the fund, although Washington would retain veto power. But Republican leaders saw them more as a bargaining chip and were pressing to swap the reforms for an agreement from the administration to delay final Internal Revenue Service regulations on political groups that conceal the name of their donors by incorporating as tax-exempt “social welfare” organizations.
The White House position was undercut this week by two New York Democrats, Representatives Eliot L. Engel, the ranking member of the House Foreign Affairs Committee, and Nita M. Lowey, the ranking member of the House Appropriations Committee, both of whom said the Senate should drop the matter and pass the other parts of the package.The White House position was undercut this week by two New York Democrats, Representatives Eliot L. Engel, the ranking member of the House Foreign Affairs Committee, and Nita M. Lowey, the ranking member of the House Appropriations Committee, both of whom said the Senate should drop the matter and pass the other parts of the package.
“I would hope that we would find a common ground, pass it, so that we can help our friends,” Speaker John A. Boehner said of the Ukraine aid and Russia sanctions measure.“I would hope that we would find a common ground, pass it, so that we can help our friends,” Speaker John A. Boehner said of the Ukraine aid and Russia sanctions measure.
The Senate legislation would guarantee $1 billion in loans to the fledgling government in Kiev and offer an additional $100 million in direct aid. It would also offer $50 million to strengthen democratic institutions, to improve the rule of law and civic organizations, and to help the Ukraine government recover assets stolen by the deposed Ukrainian government. The Senate legislation would guarantee $1 billion in loans to the fledgling government in Kiev and offer an additional $100 million in direct aid.
It would codify sanctions against Ukrainian and Russian individuals already affected by sanctions ordered by Mr. Obama, but at the same time it would expand the list of targets who would be denied United States visas and subject to civil or criminal penalties. It would codify sanctions against Ukrainians and Russians already affected by sanctions ordered by Mr. Obama, but at the same time it would expand the list of targets who would be denied United States visas and subject to civil or criminal penalties.
Similar legislation is expected to pass the House this week.Similar legislation is expected to pass the House this week.
“I feel strongly about I.M.F. reform, and we need to get that done,” Mr. Reid said. “But this bill is important.”“I feel strongly about I.M.F. reform, and we need to get that done,” Mr. Reid said. “But this bill is important.”
The decision was another setback for Mr. Obama; the administration also tried and failed in December to attach the monetary fund language to a trillion-dollar spending measure.The decision was another setback for Mr. Obama; the administration also tried and failed in December to attach the monetary fund language to a trillion-dollar spending measure.
In addition to the fund issue, the president’s nominee to head the Justice Department’s civil rights division was defeated by bipartisan opposition. His choice for surgeon general is stalled in the face of objections from the National Rifle Association. His top domestic initiatives — from raising the minimum wage to reviving expired unemployment benefits — appear unlikely to get through Congress. In addition to the fund issue, the president’s nominee to lead the Justice Department’s civil rights division was defeated by bipartisan opposition. His choice for surgeon general is stalled in the face of objections from the National Rifle Association. His top domestic initiatives — from raising the minimum wage to reviving expired unemployment benefits — appear unlikely to get through Congress.
Republicans are eager to exploit those Democratic divisions.Republicans are eager to exploit those Democratic divisions.
“I can only quote Nita Lowey, the ranking Democrat on the House Appropriations Committee, and also the ranking member of the Foreign Affairs Committee, who said it was more important to do this quickly than to deal with the I.M.F., which is a much more controversial issue,” said Senator Mitch McConnell of Kentucky, the Republican leader. “I agree with these two important House Democrats.”“I can only quote Nita Lowey, the ranking Democrat on the House Appropriations Committee, and also the ranking member of the Foreign Affairs Committee, who said it was more important to do this quickly than to deal with the I.M.F., which is a much more controversial issue,” said Senator Mitch McConnell of Kentucky, the Republican leader. “I agree with these two important House Democrats.”