Philippine president faces impeachment

Thousands of protesters march in Manila with an effigy demanding resignation of Philippines President Gloria Arroyo yesterday during her annual state of the nation address. PHOTO: AFP

Fighting for survival over allegations she rigged last year's election, Arroyo used her State of the Nation address to outline sweeping changes that close allies have suggested could allow her to leave office with dignity.

As around 40,000 protesters took to the streets to demand her ouster, Arroyo was greeted with applause from her supporters in Congress as she suggested a plan to scrap the presidency, draft a new constitution and create a parliament.

"The system clearly needs fundamental change and the sooner the better," she said. "Our political system has now become a hindrance to our national progress."

Only indirectly referring to the crisis that has led a dozen cabinet members and top officials to quit, Arroyo appealed for national unity and said she wanted to press ahead with the economic reforms she began last year.

"Now is not the time for divisiveness. While there is no avoiding partisan politics, there can be a determined effort by all sides to limit the collateral damage," she said.

The US-trained economist has been dogged by scandal for weeks after the release of audiotapes in which a woman sounding like her tells an alleged election official to fix her victory.

Arroyo has apologised for speaking to an election official before the votes had been counted but denied any wrongdoing, and she has repeatedly ignored the calls to step down.

Meanwhile a crowd that police estimated at 40,000 marched on the legislature, waving banners such as "Resign Gloria" and burning her in effigy.

Security forces used shipping containers, fire engines and garbage trucks to block the path to the legislature and deployed around 6,000 riot police to handle what was the second large street demonstration against her this month.

According to a poll released on Sunday, 52 percent of Filipinos said Arroyo should resign -- but that call has not been joined by either the overwhelmingly Catholic country's influential bishops or the military.