Aznar drew a large cheer when he announced that Spanish military service will no longer be compulsory by 2002. He also won applause when he said the United States and the European community must continue to fight against poverty and for democracy and freedom.
However, Aznar cautioned that the United States should not yet expect too much from his country, which he says still has a long way to go.
"Spain will enter the 21st century under historic conditions that are exceptional, and with opportunities that are significant," he said.
Aznar, leader of the People's Party, was an unsuccessful candidate for prime minister in 1989, but subsequently won the office in a watershed election in 1996. That year he defeated the incumbent Socialist Party administration and has since led a more moderate coalition.