President Robert Mugabe of Zimbabwe has heralded talks with the opposition as the "dawn of a new era". Negotiations have continued for six months between Mr Mugabe's Zanu-PF party and the opposition Movement for Democratic Change (MDC). They are aimed at paving the way for free and fair elections next year. BBC correspondent Peter Biles says the talks have been conducted in conditions of secrecy but a surprising degree of consensus now appears to be emerging. In his annual state of the nation address to parliament in the capital, Harare, Mr Mugabe thanked South Africa's Thabo Mbeki for mediating. He said the dialogue represents constructive engagement across the political divide and a narrowing of differences. With presidential and parliamentary elections expected in March 2008, Mr Mugabe said Zimbabwe would invite "friendly and objective" members of the international community to observe the polls.