A time for politics: The moment for strategic political alliances has arrived. (Politics).

On Sept. 1 President Vicente Fox gave his first State of the Union address to Congress, and delivered, as is traditional, a political message to the nation as well.

President Fox adhered to the established format: He did not make any spectacular announcements nor did he defy the legislative protocol. Unlike in his inaugural ceremony, the president was respectful to Congress, the body that has the power to enact his policies.

Aware of the nation's current political situation, the president's message focused on two basic ideas: the administration's government project and political agreements. Fox sought to brand his political project as "humane," a broad definition that seeks to align it to the principals of the National Action Party (PAN) while allowing other political and social groups to also support it.

Fox called on all parties to consolidate the process of democratic change through state reform. The president openly acknowledged Congress' role as an arena for dialogue and negotiation.

THE LEGISLATIVE RESPONSE

The speech by Institutional Revolutionary Party (PRI) Deputy Beatriz Paredes was full of political significance and actually overshadowed the presidential address.

She commented that there must be negotiation with the legislative body in order to generate a government project. The legislative power is not an obstacle to public-sector development, she claimed. On the contrary, it is what can guarantee democratic government within the process of change that Mexico is experiencing. Agreements between different and sometimes antagonistic political forces are possible within Congress. Paredes stressed the fact that there is no agreement with the executive branch regarding agricultural policies, and that there must be a relationship of trust if such an agreement is to exist.

POLITICAL PARTYING

Each party played its role well during the address--the Party of the Democratic Revolution (PRD) remained critical, but also demonstrated a willingness to be constructive. The PRI made use of its experience and its clout as the majority party in order to criticize the government, but also position itself as the main opposition force by calling for dialogue and negotiation. Lastly, the PAN played its own part, referring to the government's achievements while acknowledging the many pending obstacles.

There were two points of convergence between the three main parties: Nobody is betting on the failure of the present government, as this would represent the failure of democratic government. Secondly, everyone agrees that Congress is the arena for negotiating state reform.

THINGS TO COME

As the president repeatedly pointed out, now is the time for politics. All parties spoke of dialogue and made the commitment to reach nationwide agreements that jump-start state reform and democratic change.

The challenge of reaching short-term goals, however, means that the president will need to enhance his affiliation with the PAN, and opposition parties will need to put their differences aside and be flexible.

We'll have to wait and see if Congress can put aside partisan differences and legislate in the way that Paredes described in her speech. For his part, Fox's address showed he is willing to adapt himself to the new conditions facing the country, and even to break with neo-liberal dogma every once in a while.

On another note, President Fox ordered the expropriation of 27 sugar mills in early September. It is a significant event given that neo-liberal governments in the past rejected any such forms of nationalization and made privatization the ruling norm.

Finance Secretary Francisco Gil Diaz declared the possibility of privatizing the sugar mills within 18 months time. It looks as though the Fox administration might be adopting the policies of European Socio-Democratic governments, which promote a more active role in the economy, tackling those problems that the free market is incapable of resolving by itself.

Joel Estudillo is a member of the Council of the Mexican Institute for Political Studies.