Philippine President Gloria Macapagal Arroyo remained uncompromising and tough Wednesday, although a huge opposition rally against her drew tens of thousands of people in the financial district of Makati in Metro Manila.

Some of her cabinet members said that Arroyo would not cave in to the opposition tactic and dared the members of the opposition to go ahead and file its impeachment complaint at the Congress as soon as possible so that the battle would not be on the streets but through legal and constitutional processes.

At a press briefing held at the Malacanang Presidential Palace, Executive Secretary Eduardo Ermita, National Economic Development Authority Chief Romulo Neri and some other cabinet members called on the opposition not to hurt the country's economy any more, as they are already hampering the normal course of business in the country.

National Security Council Adviser Norberto Gonzales also assailed Makati City Mayor Jejomar Binay for organizing the rally in the central business district, which serves as the showcase of the country's commercial activities.

They also warned the opposition not to take any violent means to press the president to step down. "We are not without the means to guarantee peace and security in the country," said Ermita.

About 30,000 people gathered at the huge rally in Makati City Wednesday, with some opposition figures such as senator and former presidential contender "Ping" Lascon and the widow of the late presidential candidate Fernando Poe Jr., Susan Roces, showing up among the crowd.

Although the rally drew an unprecedented large number of people since the crisis broke out more than one month ago, the organizers and participants remained the old opponents of Arroyo -- left-wing groups, radical students, discontent farmers and the followers of Poe and former president Joseph Estrada.

The rally also seemed to lack new ideas and was organized in the same way with most people shouting before the camera following the orchestration of their organizers against the background of music played by a band on a stage.

The political crisis is beginning to take its tolls on the country's economy, with three international credit rating companies downgrading the Philippines' debt payment capability rating outlooks.

The Asian Development Bank Wednesday also warned that if the country's fiscal and other reforms remain stranded because of political instability, it would stop lend loans to the country.

The prolonging political crisis is feared to lead the country's worse political uncertainties, as it could further weaken the Arroyo administration and result in military coup attempts, said analysts.
 
The powerful Roman Catholic Church, which backed two popular revolts toppling two presidents in 1986 and 2001, said it would not support calls for the resignation of Arroyo.

The Presidential Palace Wednesday denied a statement by House Speaker Jose de Venecia that Arroyo has agreed to serve as a "transition president" before stepping down after a process of constitutional reform to shift the country from presidential to parliamentary system is completed next year.

Arroyo intends to finish her presidential term up to 2010 and a constitutional reform should not break up her term, said Executive Secretary Ermita.

Arroyo is expected to tackle the issue when she addresses the joint session of the Congress on July 25 in her annual state of the nation address while under unprecedented pressure from the opposition calling for her resignation over alleged election fraud and corruption charges.

Former president Fidel Ramos has suggested the convening of a constituent assembly to amend the 1987 Constitution and shift the presidential system to a parliamentary system.

The proposal was endorsed by Arroyo and most political parties of the country on Tuesday, while some lawmakers opposed to Arroyo said the plan is aimed at deviating attention of the public from the current crisis.

Presidential Management Staff Chief Rigoberto Tiglao said it was about time that the impeachment complaint against the president be launched at the Congress, rather than protracting the crisis in the streets which will paralyze the government and hurt the economy.

In other countries, there were also heated political fights but they never let these affect the economy or business, said National Economic Development Authority Chairman Neri.

"We need a firewall between political bickering and political conflict with the need for the economy and business to have stable environment to operate. And that firewall are strong institutions that people can believe in," Neri said.

(Xinhua News Agency July 14, 2005)