U.S. President Barack Obama says talks between Democrats and Republicans on the debt ceiling and deficit reduction have achieved a "significant step." But, he also warned that there isn't much time left as the August 2nd debt ceiling deadline approaches.

President Barack Obama makes a statement to the press on U.S. debt reduction in the Brady Press briefing room of the White House, July 19, 2011.

Speaking at a White House briefing, Obama praised a deficit reduction plan by a group of bipartisan senators as a very significant step. The plan aims to cut the deficit by more than 4 trillion US dollars over the coming decade and suggests some tax increases.

Obama said that plan is broadly consistent with his approach and shows "shared sacrifice" by the two parties. But a broader agreement is still needed. The U.S. borrowing limit, currently 14.29 trillion dollars, was reached on May 16 this year. The U.S. Treasury Department says the country would default without an agreement to lift the limit by August 2nd.