Dec. 5 (Bloomberg) -- Venezuelan President Hugo Chavez said he will push for a constitutional amendment next year that would allow him to hold office indefinitely as a first step toward making Venezuela a socialist nation.

Chavez, 52, speaking in his first news conference since winning re-election last weekend to his second six-year term, said other, unspecified amendments to the constitution will also be sought.

``I feel obligated to push forward with this project of socialism,'' Chavez said today in Caracas. ``Venezuelans, yes, 63 percent of Venezuelans voted for a shift toward socialism. And I have to make that wish true.''

The opposition, after taking 37 percent of the vote, remains the only credible obstacle to Chavez's plans to tighten state control of the economy, Tania Reif, a New York-based analyst with Citigroup Inc. said in a note today. Chavez, whose supporters control the Congress, courts and state governments, toned down his attacks on opponents today, even complimenting rival candidate Manuel Rosales for promptly accepting defeat, and asked their support for his ``socialist revolution.''

The government will maintain most economic policies, including keeping the bolivar at a fixed rate against the U.S. dollar, he said. Several commissions will be set up to study social policy and the economy and opposition suggestions will be welcome, he added.

``It's pure negotiating tactics to keep the opposition actively participating in the political process,'' said Patrick Esteruelas, an analyst with New York-based political risk advisers Eurasia Group. ``He recognizes that the opposition gained some momentum, but he wants them to play the rules of his game.''

No Limits

Chavez said last week that his proposed abolition of term limits would be modeled on the U.K.'s parliamentary system, which puts no caps on service for ministers or lawmakers. He initially said in September that he would seek to change the constitution in 2010.

``The plan will re-launch our republic into a new one,'' Chavez said.

Rosales said today he would propose to change the constitution by cutting the presidential term to four years from six and maintain a two-term limit. Rosales also said he would propose amendments to distribute oil income, make congressional representation proportional to the votes parties receive and to protect private property.

More Controls

Chavez, who won re-election on Dec. 3, has used his eight years in power to take control of the nation's oil wealth and share it with the poor, which account for about four in every ten Venezuelans.

Citigroup's Reif said today that the continuation of policies such as increased control of state institutions and boosting expenditures faster than government revenue are paving the way for an economic crisis in 2008.

Venezuela, the world's fifth-largest oil supplier, may have to devalue its currency by 2008 should Chavez keep increasing government spending, Reif said.

Chavez' controls on the economy, including limits on foreign currency trading and caps on bank lending rates, may expand to stepping up private property seizures and to giving citizen groups that back him more authority over the budget, said Ana Maria di Leo, chief economist with Caracas-based research company Veneconomia.

Chavez highlighted the role that so-called cooperatives, or associations of smaller producers, will play in his economic model for his next term. The government will lend $80 million to Argentine dairy maker Sancor Cooperativas Unidas, a cooperative that's highly indebted, to pay down debt and revamp operations. The company can repay its debt by exporting powdered milk to Venezuela, Chavez said.

U.S. Talks

``We expect a gradual deepening of nationalist economic policies, particularly in the oil and agricultural sectors,'' said Alberto Ramos, senior Latin America economist with Goldman Sachs Group Inc., in an e-mail.

Chavez, who has called President George W. Bush the ``Devil'' several times since September, said he is ready to initiate talks with the U.S. government about ending years of tension in their diplomatic relations.

Chavez said he had ``doubts'' about the willingness of the U.S. for such a dialogue, which he said should be held on the basis of equality and mutual respect.

``It is always possible to talk to the devil, but for that you need human strength,'' he said.

To contact the reporter on this story: Guillermo Parra-Bernal in Caracas at at gparra@bloomberg.net

Last Updated: December 5, 2006 17:16 EST