Lawmakers in the US are working on a last minute deal to set aside €600bn in tax increases and spending cuts.
President Barack Obama said that financial markets would be affected adversely if US lawmakers fail to agree on a "fiscal cliff" deal before Tuesday.
President Obama is urging US congress to act quickly to extend tax cuts for middle-class Americans.
Speaking on NBC's Meet the Press, the US president Barack Obama said If US Congress does not make that happen, the first bill brought up in the new year would be to reduce taxes for middle-income families.
He said: "If people start seeing that on January 1st this problem still hasn't been solved, that we haven't seen the kind of deficit reduction that we could have had, had the Republicans been willing to take the deal that I gave them ... then obviously that's going to have an adverse reaction in the markets."
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