Policy Defeats, Other Distractions Lead to Unsettled Times in Bush White House.

Byline: Bennett Roth

Jul. 2--WASHINGTON--The Bush administration heads into the dog days of summer with its conservative agenda in peril and its confidence shaken as it copes with sinking public approval and an invigorated Democratic opposition.

Unlike the early days when the White House brashly mowed over its opposition with its tax cut and education plans, the administration appears unusually unfocused and uncertain these days.

The changed environment was most evident last week as the Democrats now in charge of the Senate pushed through a managed-care reform bill despite veto threats from the White House.

President Bush also suffered unexpected setbacks in the Republican-controlled House, where a number of GOP members joined with Democrats to defeat oil-drilling and trade-related issues supported by the administration.

And even on the foreign-policy front, the president was embarrassed as Israeli Prime Minister Ariel Sharon, visiting the Oval Office, openly contradicted his assessment of progress in the troubled Middle East.

The news that Vice President Dick Cheney was having a pacemaker implanted to deal with an irregular heartbeat caused further distraction at the…