Obama says will work persistently to advance Mideast peace

"We're beginning to see signs of progress," Obama stated, but clarified that "we've got to make some tough budgetary choices.

"What we can't do, though, is sacrifice long-term growth, investments that are critical to the future, and that's why my budget focuses on health care, energy, education, the kinds of things that can build a foundation for long-term economic growth, as opposed to the fleeting prosperity that we've seen over the last several years."

During the press conference, Obama was asked one question on foreign affairs, which was dedicated to the future Israeli right-wing government led by Benjamin Netanyahu and its influence on the peace process with the Palestinians.

Asked whether the Netanyahu government would make peacemaking more difficult, Obama replied, "It's not easier than it was, but I think it's just as necessary."

The American president said he did not know "what the Israeli government is going to look like. And we don't yet know what the future shape of Palestinian leadership is going to be comprised of. What we do know is this; that the status quo is unsustainable."

He clarified that his administration would work persistently to help build a Palestinian state living alongside Israel with peace and security.

"By assigning George Mitchell the task of working as special envoy, what we've signaled is that we're going to be serious from day one in trying to move the parties in a direction that acknowledges that reality. How effective these negotiations may be, I think we're going to have to wait and see," he added.

Key word: Persistence

President Obama did not promise success, but persistent action. "We were here for Saint Patrick's Day, and you'll recall that we had what had been previously sworn enemies celebrating here in this very room.

"Leaders from the two sides in Northern Ireland that a couple of decades ago or even a decade ago people would have said could never achieve peace. And here they were, jointly appearing and talking about their commitment, even in the face of violent provocation.

"And what that tells me is that, if you stick to it, if you are persistent, then these problems can be dealt with. That whole philosophy of persistence, by the way, is one that I'm going to be emphasizing again and again in the months and years to come as long as I'm in this office. I'm a big believer in persistence."

Obama clarified that immediate results should not be expected. In this context, he mentioned the message he sent to the Iranians in honor of their New Year holiday.

"We did a video sending a message to the Iranian people and the leadership of the Islamic Republic of Iran. And some people said, 'Well, they did not immediately say they were eliminating nuclear weapons and stop funding terrorism.' Well, we didn't expect that. We expect that we're going to make steady progress on this front."

Tuesday's press conference was the second held by Obama since he took office, and it was broadcast on US television channels during prime-time hours, as part of the effort to "sell" the budget to the American public.

Obama's biggest problem is the fact that the main resistance to his budget comes from within the ranks of the Democratic Party, particularly among the Democratic senators in the Senate.

Later in the day the president was expected to visit Capitol Hill in order to try and convince Congress members to support his plan "so that we don't face another crisis like this 10 or 20 years from now."