US

Second Obama Commerce Secretary choice drops out over stimulus package

Article published on the 2009-02-13 Latest update 2009-02-13 13:22 TU

Senator Judd Gregg as he announces his withdrawl, 12 February 2009
(Photo: Reuters)

United States President Barack Obama’s second pick for the post of Commerce Secretary withdrew Thursday, citing “irresolvable conflicts” over Obama’s proposed stimulus package, among other issues. Obama had nominated Republican Judd Gregg, in a move to bridge the political divide, after his first pick, New Mexico’s Democratic Governor Bill Richardson withdrew over an inquiry into political donations.

"I am an eternal optimist," said Obama, after Gregg’s announcement, saying that he will continue to try to win bipartisan support in Congress for his 789-billion-dollar (615-billion-euro) economic stimulus plan.

Gregg, a senator from New Hampshire, said he was withdrawing because of differences over the bill, which involves about one-third tax cuts and is otherwise financed by new government spending.

Republicans have said there are too few tax cuts, and too many pet projects.

Gregg announced his withdrawal as Obama was giving a speech where he appealed to Republican support.

“It is time for Congress to act, and I hope they act in a bipartisan fashion,” he said in a speech at a manufacturing plant for Caterpillar construction equipment.

The House of Representatives is to start debating the plan on Friday at 9 am local time and vote on it in the afternoon. The Senate is aiming to pass it in the evening.

While Obama now has to find a new choice for Commerce Secretary, the Senate did approve his pick for intelligence head late Thursday.

Leon Panetta, 70, was confirmed as the new director of the Central Intelligence Agency (CIA), despite some criticism over his lack of intelligence experience.

A White House Chief of Staff under President Bill Clinton, Panetta was a member of the Iraq Study Group, which made recommendations in 2006 over ending the conflict there.

He takes over from Michael Hayden and has promised to end the use of waterboarding and transferring detainees to countries where they may face torture or abuse.