President Vicente Fox promised to strengthen his often rocky relationship with Congress and acknowledged that his administration must do more to improve the economy, but he also used his state-of-the-nation address to tell new lawmakers: "Mexico demands better of us."

Mexican President Vicente Fox gives his state-of-the-nation address to a joint session of Mexico's Congress on Monday Sept 1, 2003, in Mexico City.   [AP]

Stalled during the first half of his term by an often hostile Congress, Fox on Monday urged the nation's 500 new deputies in the lower house of Congress to help him make economic reforms and reduce poverty.

"The opening of this legislature is the opportunity to begin again and to respond to society's dissatisfaction at the delay in changes," he said.

Many lawmakers were unconvinced, foreshadowing what could be three more years of political gridlock. Lawmakers repeatedly interrupted Fox to shout: "People are dying of hunger!" and "Lies!"

Fox appeared rattled by the attention, stumbling over words and turning red as Congress' president scolded lawmakers for the outbursts.

The image was a sharp contrast from the confident Fox of three years ago, when his presidential victory unseated the long-ruling Institutional Revolutionary Party.

Fox took office riding a wave of enthusiasm, and promised to create millions of jobs so that Mexicans wouldn't have to work illegally north of the border. He also pledged to negotiate a migration accord with the United States, but those talks were sidelined by the Sept. 11 terrorist attacks.

On Monday, lawmakers criticized the lack of jobs and said Fox had fallen short of his many promises.

"Mexicans voted for a change," said Oscar Gonzalez of the Labor Party. "You, Mr. President, have not known how or have not been able to deliver that. You have betrayed the trust of the Mexican people."

In response, Fox dropped his normally triumphant tone and admitted that the "lags and challenges we face remain huge."

"We have conquered democracy, but now we must perfect it and make it more effective," he said.

He urged the country to work together to reduce poverty, fight crime and increase education levels, and he called for an end to political infighting.

"What we decide today will be part of history," he said. "If we fail, the clamor shall not only be justified. It will be historic."

He asked lawmakers to work with him to pass his proposed labor and energy reforms.

But while most agreed on the need for reforms, many lawmakers objected to Fox's plans to allow private investment in the energy sector and raise taxes on food and medicine.

"We won't accept anymore taxes on the poor," said Pablo Gomez of the Democratic Revolution Party. "We want the rich to pay what they owe."

Interviewed after Fox's speech, Gomez called it "the same mediocrity as always."

"There was nothing new," he said.

Fox could face an even tougher battle his last three years in office. July 6 midterm congressional elections left his National Action Party with 25 percent fewer spots in the 500-seat lower house of Congress. The PRI boosted its representation to 222 seats.

One of Fox's closest allies in the PRI, Elba Esther Gordillo, called for unity by saying: "Nobody wins, if Mexico loses."

But Gordillo, the leader of her party in Congress, appeared to have little control over her followers. PRI lawmakers spent much of Fox's speech holding up signs in protest and shouting insults at the president.

Lawmakers also called on Fox to do something about the string of murders in the rough border city of Ciudad Juarez.

Fox responded by saying he would appoint a commissioner to coordinate the federal government's participation in solving the cases. As he spoke, several female lawmakers held up signs that read: "Not one more" victim.

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