Philippine President Gloria Arroyo delivered her annual state of the nation address to the joint session of the congress yesterday afternoon, urging legislators to amend the constitution through a constituent assembly.

Arroyo said the Philippine political system had degenerated, and that this is the other side of the nation's good economic story.

"The system clearly needs fundamental change, and the sooner, the better. It is time to start the great debate on Charter change," she added.

Arroyo said: "The mode of Charter change is the exclusive prerogative of congress but a constituent assembly may well give our people the quickest reform."

She added that it will be a future objective to establish "a parliamentary system similar to that of our progressive nations in the region," saying a federal form of government would be the best solution to the country's political problems.

In her televized speech, which was boycotted by dozens of opposition lawmakers, Arroyo said the nation is divided by the turmoil and called for a rapprochement of political parties, saying "now is not the time for divisiveness, and while there is no avoiding partisan politics, there could be a concerted effort on both sides to limit the collateral damage on a country poised for take-off."

Referring to the achievements of her administration, Arroyo also cited the 2-per cent growth of the country's economy, and the creation of four million jobs in the last four years.

She told the story of 69 million beneficiaries of health care insurance, cited the decline of the drug menace, kidnappings and the insurgency in the South, and pointed to the country's revenue increase and the break from further debts.

Arroyo ended her speech by appealing to strive for one Philippines, "not a country of this or that president" but one that shares a country's passion.

Before, during and after Arroyo's address, the president was applauded for minutes in the hall of the House of Representatives, with her supporting congressmen giving a standing ovation.

Outside the hall, there are up to 40,000 protesters rallying around. Police put up barbed wire fence and roadblocks to stop both pro and anti-Arroyo campaigners from heading to Batasan Complex where President Arroyo addressed Congress.

Arroyo took a helicopter to Batasan Complex from the presidential palace before she delivered the address amid political unrest and mass rallies.

The opposition has filed a revised complaint of four impeachable charges against Arroyo yesterday morning, aiming to put it as top agenda in this session of the congress.

After the address, Senate President Franklin Drilon, however, warned that Arroyo's proposal to change the constitution through a constituent assembly will not pass through the Senate.

Drilon reiterated his stance calling for Arroyo's resignation in his opening address of the second session of the congress yesterday morning.

Defying demands that she quit over allegations of election fraud, Arroyo has been rebuilding her economic team and shoring up her support base after a wave of resignations and defections appeared to be driving her four-year presidency to a rapid end.

Jose de Venecia, the lower house speaker and an Arroyo ally, sent the impeachment motion to the justice committee, which has 60 working days to weigh the merits of the charges of cheating in last year's election, graft and betraying the public trust.

Arroyo's opponents now must wait for the committee to finish its deliberations before a vote in the lower house on whether to send the impeachment complaint to the Senate.

Ronaldo Zamora, an opposition member of the lower house, said Arroyo's rivals were still short of the required support of one-third of the 235 legislators.

Meanwhile, investors have been rattled by weeks of political turmoil, fearing a lengthy and uncertain impeachment process or a shift to a parliamentary system will delay efforts to boost revenues, cut debt and stimulate an economy that lags much of Southeast Asia.

Philippine financial markets were closed after the president declared yesterday a holiday in Manila.

(China Daily July 26, 2005)