Iran's new President Mahmoud Ahmadinejad said today the Islamic Republic, under intense pressure from the West over its nuclear ambitions, would not be intimidated.
Taking the oath of office in parliament following his stunning June election win, the former Tehran mayor said his priority would be to tackle unemployment and his foreign policy would seek to reduce international threats.
"We are logical and respect international rules, but will not give in to those who want to violate our rights," he said in a brief address. "The Iranian nation cannot be intimidated."
The European Union today offered Iran a package of incentives to scrap nuclear fuel work while saying it would be sent to the UN Security Council if it did not.
Iran, which denies US accusations that its nuclear energy programme is a smokescreen for making atomic bombs, said today the EU proposal was unacceptable. It says it will remove UN seals on some nuclear equipment this week.
Mr Ahmadinejad (48), who replaced reformist cleric Mohammad Khatami, is a religious conservative who diplomats expect will adopt a tougher approach in the nuclear negotiations. However, in spite of the heightened tension surrounding the issue, he made no direct reference to it during his speech.
"Seeking justice, peace and the removal of threats are three main elements of our foreign policy," he said.
The former Revolutionary Guard, who upset political veteran and former President Akbar Hashemi Rafsanjani to win June's election, swore his oath of office on the Koran and called for a renewal of Islamic values.
"In recent years there has been an effort to weaken the role of religion in society," he said. "Islam is the foundation of Iranian culture and thought."
His arrival in office brings to a close Khatami's largely unsuccessful eight-year experiment in reforms. Religious conservatives now enjoy a monopoly on power, dominating parliament and controlling key bodies such as the armed forces, judiciary and broadcast media.
The president in Iran appoints ministers who manage the day-to-day business of government. However, the government's power is checked by several unelected bodies answerable to Supreme Leader Ayatollah Ali Khamenei, the most powerful figure in Iran who is appointed for life.