President Joe Biden and congressional Republicans approach a crucial week of debt-ceiling discussions hoping to agree on spending and energy restrictions to avoid a catastrophic default.

The White House is against eliminating Biden’s Inflation Reduction Act of 2022’s green-energy incentives, but House Republicans are. As a result, energy rules may also unite the parties.

Biden told reporters Sunday that he believed both parties wanted a deal. “I think we’ll be able to do it,” he remarked.

White House officials said the weekend meetings were productive.

Before departing for a G-7 conference in Japan, Biden will meet with congressional leaders on Tuesday.

That trip will leave little time for the two sides to achieve a deal before the U.U.S. runU.S.out of money to pay its payments, which Treasury officials believe might happen by June 1.

Economists warn that a first-eveU.S.S. dU.S.lt would plunge the country into recession and disrupt global financial markets. As a result, investors and consumers are worried.

Republicans think they have time.

“Ninety percent of the work on these deals always happens in the last two weeks regardless. On Friday, Republican proposal co-author Dusty Johnson told Reuters, “I still see a path forward to success.”

The White House is eager to discuss fiscal issues with House Republicans, but Biden insists that Congress must boost the nation’s borrowing capacity without conditions.

“We expect that Congress will do what is necessary even as we continue to have parallel discussions on the budget,” White House National Economic Council chief Lael Brainard told C.B.S. on Sunday.

Former President Donald Trump advised Republicans to default if their demands weren’t met.

“Better now than later,” he posted. In April, House Republicans passed a $1.5 trillion debt-ceiling rise and $4.8 trillion in expenditure cutbacks, mostly by lowering discretionary spending by 8% next year and restricting growth.

Democrats oppose repealing Biden’s student-loan forgiveness program and raising job requirements for other benefit programs.

They are considering expenditure caps.

On Friday, leading moderate Republican Representative Don Bacon told reporters that a compromise might allow for 2% annual hikes instead of the 1% in the Republican bill.

“We may be able to negotiate something a little higher than what we have, but maybe not as high as the president would want,” he said.

A conservative Manhattan Institute fellow Brian Riedl said the White House and Republicans might agree to streamline pipeline and energy infrastructure permitting. Still, it would take time to put into legislation.

He predicted a smaller settlement if the two parties took longer to negotiate one. “The field of play is going to shrink because you’re running out of time on broader policies,” he told Reuters.