Mexico's new president, Mr. Vicente Fox, has wasted no time in getting down to business. During the campaign, he promised sweeping change. The Mexican people believed him, voting him into office in a historic election. In his inaugural address last week, Mr. Fox stuck to his theme of renewal. But the new president has his work cut out for him. Mr. Fox has ended the Institutional Revolutionary Party's 71-year hold on the presidency, but he does not command a majority in the legislature. Worse, he faces endemic corruption and inefficiency. Mr. Fox will need every bit of his legendary stamina and charisma to transform Mexico as he intends.

The new president's agenda focuses on basic issues. His priorities include economic growth, poverty reduction, raising the level of schooling and reforming the police and the judiciary. None will be easy; doing them all will be Herculean. His first budget, released last week, highlighted the dilemmas. Mr. Fox has admitted that there will not be a lot of extra money to spend on social programs.

His chief concern is the economy. Mr. Fox, along with other business and political leaders, worries that the economy is growing too fast, which could trigger runaway inflation. The Mexican economy is expected to grow 7 percent this year, but the president wants to slow it to 4.5 percent in 2001. Moreover, Mexico continues to be vulnerable to external shocks. Its dependence on petroleum revenues exposes the country to volatility in the oil market, while a U.S. slowdown will take a big bite out of exports, a driver for Mexican growth.