Iraq and economy dominate State of the Union speech

US President George W Bush focused on the troubled US economy and successes in Iraq in his final State of the Union speech last night.

He urged Congress to approve a $150bn (€101.6bn) rescue plan for the economy and said al-Qaida was “on the run in Iraq, and this enemy will be defeated”.

Mr Bush’s last State of the Union address of his presidency was very different to the one he made this time last year, in which he implored a sceptical Congress to embrace his unpopular plan to send more troops to Iraq and boasted that unemployment was low and the economy was on the move.

Last night, Mr Bush told Congress: “While the enemy is still dangerous and more work remains, the American and Iraqi surges have achieved results few of us could have imagined just one year ago.

“Some may deny the surge is working, but among the terrorists there is no doubt.”

To a roar from his audience, Mr Bush went on: “Al-Qaida is on the run in Iraq, and this enemy will be defeated.”

“Our enemies in Iraq have been hit hard. They are not yet defeated, and we can still expect tough fighting ahead.

“We must do the difficult work today, so that years from now people will look back and say that this generation rose to the moment, prevailed in a tough fight, and left behind a more hopeful region and a safer America.”

On the economy, Mr Bush said Americans were concerned about their economic future but insisted they could be confident about economic growth in the long term.

“To build a prosperous future, we must trust people with their own money and empower them to grow our economy,” he said.

“As we meet tonight, our economy is undergoing a period of uncertainty.

“And at kitchen tables across our country, there is concern about our economic future. In the long run, Americans can be confident about our economic growth.”

In the 45-minute speech, he urged the Democrat-led Congress to approve the rescue package and said that its members’ actions “will affect the security and prosperity of our nation long after this session has ended”.

“In this election year, let us show our fellow Americans that we recognise our responsibilities and are determined to meet them,” he said.

“And let us show them that Republicans and Democrats can compete for votes and co-operate for results at the same time.”

The president also called on Iran to suspend its uranium enrichment programme so negotiations could begin.

“Rejoin the community of nations, come clean about your nuclear intentions and past actions, stop your oppression at home, and cease your support for terror abroad,” he said.

“But above all, know this: America will confront those who threaten our troops, we will stand by our allies, and we will defend our vital interests in the Persian Gulf.”

Addressing millions of Americans – and the world – in the live televised address, Mr Bush said US foreign policy was based on a “clear premise”.

“We trust that people, when given the chance, will choose a future of freedom and peace,” he said.

“In the last seven years, we have witnessed stirring moments in the history of liberty… And these images of liberty have inspired us.”

Referring to terror attacks around the world, including the July 7 bombings in London, the president went on: “In the past seven years, we have also seen images that have sobered us… (and) serve as a grim reminder: the advance of liberty is opposed by terrorists and extremists – evil men who despise freedom, despise America, and aim to subject millions to their violent rule.”

He went on: “The secret of our strength, the miracle of America, is that our greatness lies not in our Government, but in the spirit and determination of our people.”

Mr Bush also addressed peace in the Middle East, saying: “The time has come for a Holy Land where a democratic Israel and a democratic Palestine live side-by-side in peace.”

He said: “America will do, and I will do, everything we can to help them achieve a peace agreement that defines a Palestinian state by the end of this year.”

Mr Bush also called for a “new international clean technology fund”.

He said it would “help developing nations like India and China make greater use of clean energy sources”.

“And let us complete an international agreement that has the potential to slow, stop, and eventually reverse the growth of greenhouse gases,” Mr Bush said.

“This agreement will be effective only if it includes commitments by every major economy and gives none a free ride.”

The State of the Union address, delivered by a president who is on his way out of office and whose approval rating is at 34% and near its all-time low, contained only modest plans with no new bold initiatives.