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Mugabe hails Zimbabwe 'new dawn' Mugabe hails Zimbabwe 'new dawn'
(41 minutes later)
President Robert Mugabe of Zimbabwe has heralded talks with the opposition as the "dawn of a new era".President Robert Mugabe of Zimbabwe has heralded talks with the opposition as the "dawn of a new era".
Negotiations have continued for six months between Mr Mugabe's Zanu-PF party and the opposition Movement for Democratic Change (MDC).Negotiations have continued for six months between Mr Mugabe's Zanu-PF party and the opposition Movement for Democratic Change (MDC).
They are aimed at paving the way for free and fair elections next year.They are aimed at paving the way for free and fair elections next year.
BBC correspondent Peter Biles says the talks have been conducted in conditions of secrecy but a surprising degree of consensus now appears to be emerging.BBC correspondent Peter Biles says the talks have been conducted in conditions of secrecy but a surprising degree of consensus now appears to be emerging.
In his annual state of the nation address to parliament in the capital, Harare, Mr Mugabe thanked South Africa's Thabo Mbeki for mediating.In his annual state of the nation address to parliament in the capital, Harare, Mr Mugabe thanked South Africa's Thabo Mbeki for mediating.
He said the dialogue represents constructive engagement across the political divide and a narrowing of differences.He said the dialogue represents constructive engagement across the political divide and a narrowing of differences.
With presidential and parliamentary elections expected in March 2008, Mr Mugabe said Zimbabwe would invite "friendly and objective" members of the international community to observe the polls.With presidential and parliamentary elections expected in March 2008, Mr Mugabe said Zimbabwe would invite "friendly and objective" members of the international community to observe the polls.
Foreign relationsForeign relations
Mr Mugabe said "a sinister campaign" by former colonial power Britain to isolate Zimbabwe, and bar the country from the forthcoming Europe/Africa summit in Lisbon, was disintegrating.Mr Mugabe said "a sinister campaign" by former colonial power Britain to isolate Zimbabwe, and bar the country from the forthcoming Europe/Africa summit in Lisbon, was disintegrating.
He said the problems between the UK and Zimbabwe should be addressed bilaterally.He said the problems between the UK and Zimbabwe should be addressed bilaterally.
Food shortages have become a regular occurrenceBut his comments did not reflect the views expressed by other European ministers.Food shortages have become a regular occurrenceBut his comments did not reflect the views expressed by other European ministers.
Spanish Foreign Minister Miguel Angel Moratinos has told journalists that Spain would prefer Mr Mugabe to stay away, a similar position to that already expressed by hosts Portugal.Spanish Foreign Minister Miguel Angel Moratinos has told journalists that Spain would prefer Mr Mugabe to stay away, a similar position to that already expressed by hosts Portugal.
"We would all like it if he did not participate. That is the Spanish position," said Mr Moratinos."We would all like it if he did not participate. That is the Spanish position," said Mr Moratinos.
But other EU countries have not followed the lead of UK Prime Minister Gordon Brown who refuses to attend the summit if Mr Mugabe is present.But other EU countries have not followed the lead of UK Prime Minister Gordon Brown who refuses to attend the summit if Mr Mugabe is present.
On Monday Jendayi Frazer, assistant Secretary of State for African Affairs, said the United States "did not agree" with the decision to invite Mr Mugabe to the summit but said the invitation provided an opportunity to discuss Zimbabwe's human rights record.On Monday Jendayi Frazer, assistant Secretary of State for African Affairs, said the United States "did not agree" with the decision to invite Mr Mugabe to the summit but said the invitation provided an opportunity to discuss Zimbabwe's human rights record.
Ms Frazer announced extended travel and financial sanctions against Zimbabwe to embrace an additional 38 people and two companies with ties to Mr Mugabe.Ms Frazer announced extended travel and financial sanctions against Zimbabwe to embrace an additional 38 people and two companies with ties to Mr Mugabe.
Economy 'recovering'Economy 'recovering'
While observers note Zimbabe's chronic shortages of basic goods and worsening power and water outages, Mr Mugabe told parliament that the country continued to defy predictions of economic collapse and social upheaval. While observers note Zimbabwe's chronic shortages of basic goods and worsening power and water outages, Mr Mugabe told parliament that the country continued to defy predictions of economic collapse and social upheaval.
He said in the past year Zimbabwe has moved towards "sustained economic recovery notwithstanding the suffering endured by many of our people."He said in the past year Zimbabwe has moved towards "sustained economic recovery notwithstanding the suffering endured by many of our people."
Zimbabwe's official inflation is given at around 8,000% - the highest in the world Last week, the country's chief statistician said there were no longer enough goods in the shops for him to work out the inflation rate. Zimbabwe's official inflation is given at around 8,000% - the highest in the world.
Last week, the country's chief statistician said there were no longer enough goods in the shops for him to work out the inflation rate.