PHILIPPINES: Gloria Macapagal Arroyo defied mounting calls to step down as president of the Philippines yesterday, saying she would appoint a new cabinet in the next few days "to get our economy moving".
Arroyo, due to serve until 2010, is facing the toughest test of her four years as leader over allegations that she tried to influence the vote-count in last year's presidential election and that family members have taken kickbacks from illegal gambling.
All eyes are on a weekend meeting of the Catholic Bishops Conference of the Philippines. Withdrawal of support by the senior clergymen would almost certainly be a lethal blow.
Indeed, they already appear divided in their support for Arroyo and church sources said yesterday the bishops were leaning towards joining the chorus of calls for her to resign. "There is an understanding we have to make a statement on the president," said Bishop Antonio Ledesma.
A consensus was building for the bishops to ask the president to make a personal sacrifice to end the political crisis, a source in the conference said.
In Manila, the military and police were on the highest level of alert. General Efren Abu, the military's chief of staff, ordered troops not to intervene in the crisis at a hastily called meeting of all senior commanders.
Yesterday, members of her sacked cabinet, iconic former president Corazon Aquino, and an influential business group joined a chorus calling on her to step down. But voices of support came from defence secretary Avelino Cruz, justice secretary Raul Gonzales, economic planning secretary Romulo Neri and 13 other members of the cabinet.
"I was duly elected to uphold the constitution," Arroyo said on government radio before meeting political allies, including former president Fidel Ramos.
Two impeachment complaints have been prepared against Arroyo, whose majority in the lower house of Congress is likely to quash any attempt to oust her.
Ramos has proposed a change in the two-house congressional system that would see Arroyo stay on as caretaker president until fresh elections for a single parliament in May 2006.
Arroyo, who said on Thursday the political system required fundamental change, has made no secret of her own desire to move to a parliamentary system to speed up passage of laws.
"She's the last stumbling block to reforms being achieved in the country," Francis Escudero, who leads the opposition in the lower house, said on ANC television.
Analysts said financial markets would have liked Arroyo's main economic managers to stay on to steer reforms aimed at improving weak revenue collection and cutting debt of nearly $70 billion (€58.7 million).
Under the constitution, vice president Noli de Castro would assume the presidency if Arroyo resigned. The president should be given "a chance to think", de Castro said on Friday.
"Even a swift Arroyo resignation would be unlikely to settle matters as vice president de Castro has questionable support among the elite," JP Morgan said in a note to clients.
About 1,500 anti-Arroyo protesters gathered in Manila's business district but there has been no sign of the rage behind the "people power" uprisings that ousted dictator Ferdinand Marcos in 1986 and president Joseph Estrada in 2001.