President George W. Bush on Thursday made clear his intention to set to work immediately on an overhaul of Social Security, as he set out an ambitious second-term agenda of domestic reform.

“I earned capital in the campaign, political capital, and now I intend to spend it. It's my style . . . I'm going to spend it for what I told the people I'd spend it on,” a jovial Mr Bush said in a high-spirited press conference. “You've heard the agenda: Social Security and tax reform, moving this economy forward, education, fighting and winning the war on terror.”

As politicians called for a period of healing after a long, bitter and expensive election campaign, Mr Bush also emphasised the common political ground but made clear the limits to hisbipartisanship. “I'll reach out to everyone who shares our goals,” he said, making clear that he saw the votes of 59m Americans 51 per cent of the electorate as a resounding endorsement. “I've got the will of the people at my back,” he said. Asked to explain how he will work to bring disheartened Democrats on board, Mr Bush responded: “We'll put out an agenda that everybody understands and work with people to achieve the agenda.”

Mr Bush made clear his administration was already working on Social Security reform proposals, drawing from the conclusions of the bipartisan commission chaired by the late Daniel Patrick Moynihan and Richard Parsons, now chief executive of TimeWarner, the media company.

He reiterated his commitment not to raise taxes and emphasised the needed to simplify the tax code, but acknowledged the political obstacles in Washington to fundamental tax reform. Mr Bush also said he would continue to work to win international support for his agenda of spreading freedom in the Middle East.