Bloomberg joins group pressing for 'fiscal cliff' grand bargain

By Vicki Needham - 12/12/12 01:45 PM ET

New York City Mayor Michael Bloomberg is adding his name to a growing list of policymaking heavyweights who are trying to steer negotiators toward a grand bargain on a year-end deficit-reduction package.

Bloomberg joined Campaign to Fix the Debt on Wednesday as its third national co-chairman, charged with pressing the White House and lawmakers to work together on an agreement over the "fiscal cliff" issues of spending cuts, tax increases and entitlement reforms.

"The federal deficit poses a serious and eminent threat to the U.S. economy," Bloomberg said.

"Congress and the White House have an obligation to work together to help bolster economic growth by stabilizing our country’s long-term debt. We can’t keep addressing the country’s ills with short-sighted ‘band-aid’ fixes," he said.

He joins former Sen. Judd Gregg (N.H.) and Pennsylvania Gov. Ed Rendell as the national co-chairmen for the group.

House Republican leaders said Wednesday that serious differences remain between them and the White House's vision for a deficit-reduction package that must be completed by the end of the year to avoid going over the so-called fiscal cliff.

House Speaker John Boehner (R-Ohio) warned that a post-Christmas session could be in order if an agreement isn't hammered out before the holidays.

The debt campaign, a bipartisan group founded by Erskine Bowles and Alan Simpson, the former co-chairmen of the president's deficit-reduction commission who authored a plan turned down by Congress, is pressing for a broad resolution, although they aren't backing any specific policies.

Simpson has said the group has raised millions to back lawmakers from both parties who come under political attack for compromising on a deal.

He has led the charge against Norquist's Americans for Tax Reform (ATR) pledge, which has been signed by most Republicans in Congress and prohibits the support of any tax increases.

"Mayor Bloomberg has been a longtime advocate of fiscal responsibility, and his voice will send a strong message to Washington that we have to rein in spending, raise revenue, and reform entitlements in order to get the national debt under control,” said Maya MacGuineas, president of the Committee for a Responsible Federal Budget and head of the campaign.