Embattled Mexico leader acknowledges national 'outrage'

His popularity plunging, Mexican President Enrique Pena Nieto used his annual state-of-the-nation speech on Wednesday to acknowledge national anger over violence and scandals that have shaken the country. Pena Nieto invoked last year's disappearance and likely slaughter of 43 college students, and the July 11 jailbreak of Mexico's most powerful drug lord, Joaquin "El Chapo" Guzman. He also mentioned conflict of interest allegations against him and his wife, former soap opera star Angelica Rivera, over the purchase of a luxurious home from a government contractor. An official probe by his anti-corruption minister cleared the presidential couple of any wrongdoing. But critics said an independent investigation should have taken place. "The last year has been difficult for Mexico. Our country was deeply hurt by a series of cases and terrible events," Pena Nieto told hundreds of guests at the ornate National Palace. "(They) have generated annoyance, and outrage, within Mexican society," he said. Halfway into his six-year term, Pena Nieto's approval rating dropped from 40 percent in May to 35 percent in August, according to pollsters Buendia & Laredo. - 'Triumphalist monologue' - Pena Nieto reshuffled his cabinet last week, replacing his national security commissioner, but keeping his much-criticized interior and finance ministers. While he acknowledged the national malaise, Pena Nieto said the homicide rate had fallen since he took office in December 2012, while 92 of the country's 122 most wanted criminals have been captured. But analysts have questioned the reliability of government statistics and Pena Nieto's own annual written report to Congress showed that 73.3 percent of Mexicans feel that their communities lack public safety, up from 66.6 percent in 2012. The head of the conservative National Action Party, Ricardo Anaya, refused to attend the speech and said the president's remarks were a "triumphalist monologue." Anaya cast doubt over the economic and security statistics cited by Pena Nieto, saying that the president's report "resembled that of another country, of a Mexico where everything is going well." Pena Nieto acknowledged the nation's concern over slowing economic growth, which has been dragged down by a sharp drop in global oil prices and the peso's fall against the dollar. But he said his government was determined to turn the tide thanks to a dozen structural reforms that have won international praise, including the historic opening of the energy sector to private investors. "We can say with pride that Mexico is moving forward," he said. Pena Nieto proposed 10 new measures to improve the country's economy and much-maligned justice system to protect human rights and combat corruption. The measures include the creation of special economic areas in the country's poorest regions and infrastructure programs. But he also warned that the government would have to tighten its budgetary belt. "We will continue on this difficult and complex road," Pena Nieto said. "Our country has everything to become a power in the coming years."