US President George W Bush has promised to "answer every danger and every enemy" threatening the American people. In his annual State of the Union address before Congress, Mr Bush highlighted many challenges faced by the United States at home and abroad.

"Our first goal is clear: We must have an economy that grows fast enough to employ every man and woman who seeks a job," he said, focusing first on domestic issues such as the economy, taxes, and health care.

The dictator of Iraq is not disarming - to the contrary, he is deceiving George W Bush

Mr Bush then articulated the US case against Iraq - but did not declare war or set a timetable for it.

Although there are nearly two years to go before the next presidential election, analysts say Mr Bush's performance could be vital in reversing a downward trend in his popularity.

Goals

"This country has many challenges," Mr Bush said at the beginning of the speech.

"We will not deny, we will not ignore, we will not pass along our problems to other Congresses, other presidents and other generations. We will confront them with focus, and clarity and courage," he added.

Mr Bush outlined a number of specific domestic goals for Congress in the coming year - including a stronger economy, affordable health care, and the need for faith-based charity to held the poor.

"Jobs are created when the economy grows," Mr Bush said.

[The president] shall from time to time give to the Congress information of the State of the Union, and recommend to their consideration such measures as he shall judge necessary and expedient US Constitution

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Mr Bush defended his plan to reduce taxes on share dividends.

The president acknowledged that for many Americans care was too costly - and that many had no coverage.

"These problems will not be solved with a nationalised health care system that dictates coverage and rations care," he said.

"Instead, we must work toward a system in which all Americans have a good insurance policy ... choose their own doctors ... and seniors and low-income Americans receive the help they need.

Mr Bush called for environmental measures, and announced a plan to release $1.2bn in federal funding for research on hydrogen-powered automobiles.

Mr Bush also asked "Congress and the American people to focus the spirit of service and the resources of government on the needs of some of our most vulnerable citizens".

The president has invited a varied group of ordinary Americans to watch the speech in Congress - including a doctor, an elderly couple on Medicare, and a member of a faith-based addiction programme - to emphasise his domestic priorities, as well as several members of the military.

'Resolute'

The second half of the speech is focusing on foreign challenges.

Mr Locke will reply for the Democrats

Mr Bush vowed to take the lead in the worldwide fight against Aids.

"I ask the Congress to commit $15bn over the next five years [...] to turn the tide against Aids in the most afflicted nations of Africa and the Caribbean," he said.

The president also spoke about his administration's war on terror, and said America was winning.

"We have the terrorists on the run, and we are keeping them on the run,"�he said.

He also said "outlaw regimes" with weapons of mass destruction were "the gravest danger facing America and the world".

"These regimes could use such weapons of blackmail, terror and mass murder," he said.

Mr Bush reaffirmed his tough stance on Iraq.

"Almost three months ago, the United Nations Security Council gave Saddam Hussein his final chance to disarm," Mr Bush said.

"He has shown instead his utter contempt for the United Nations, and for the opinion of the world.

"The dictator of Iraq is not disarming. To the contrary, he is deceiving."

Mr Bush announced that he would ask the United Nations Security Council to meet on 5 February to consider "Iraq�s ongoing defiance of the world".

He said Secretary of State Colin Powell would present intelligence about Iraq's weapons programs, "its attempts to hide those weapons from inspectors, and its links to terrorist groups".

"Let there be no misunderstanding," he said. "If Saddam Hussein does not fully disarm, for the safety of our people, and for the peace of the world, we will lead a coalition to disarm him."

Concern

Many European countries - including France, Germany and Russia - have expressed scepticism about the immediate danger posed by Iraq and said more time is needed for UN weapons inspectors to complete their work.

On Tuesday, however, Russian President Vladimir Putin said Moscow's position could toughen if Baghdad failed to co-operate with the arms inspectors.

In the US Democrats criticised the speech even before it was delivered.

"The state of the union today is anxious," senate democratic leader Tom Daschle said.

Gary Locke, the governor of the state of Washington, will deliver the Democrats' response.

"People are very concerned about their pensions, they're concerned about their jobs, they're concerned about the economy, they're concerned about war in Iraq, they're concerned about the war against the terrorists, they're concerned about education," he added.