New leader in Manila says the economy is priority

The new Philippines President, Mrs Gloria Macapagal Arroyo, began forming her government yesterday and said economic reform would…

The new Philippines President, Mrs Gloria Macapagal Arroyo, began forming her government yesterday and said economic reform would be the top priority.

Less than 24 hours after she was dramatically sworn in as the country's 14th President foll owing the ousting from power of Mr Joseph Estrada, Mrs Arroyo was holding meetings to decide on policies and finalise her cabinet.

One of the President's first acts was to accept the resignation of the chief general of the police, Mr Panfilo Lacson, whom opponents had accused of human rights abuses during Mr Estrada's reign.

"We're hitting the ground running and we would like to assure our people Arroyo's team is on the ball," the President's chief presidential aide, Mr Renato Corona, said.

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Analysts said Mrs Arroyo would have to deliver results quickly and deal with a newly powerful military, which switched sides to bring a quick end to the nation's worst political crisis since a 1986 "people power" revolution toppled the dictator Ferdinand Marcos.

Mrs Arroyo was sworn in as President during a hasty inauguration ceremony on Saturday. Mr Estrada fell from power after four days of sustained street protests from tens of thousands of opponents following the dramatic collapse of his corruption trial.

Mr Estrada was reported to have spent yesterday in his private residence in Manila. Several friends, including the main lawyer defending him at the impeachment trial, were reported to have fled the country.

Hundreds of Arroyo supporters turned out for a thanksgiving mass at the EDSA shrine in Manila, the focus of days of anti-Estrada protests.

The Catholic Archbishop of Manila, Cardinal Jaime Sin, said the country was like a newborn child.

"We must remain vigilant. We must never allow the mistakes of the past to best us again," he said.

Asked if she was worried about repeats of the coup attempts that have plagued the country, Mrs Arroyo said: "We can never be complacent." But she said she was not worried about people-power revolts. "That is not dangerous," she told CNN. "That's exemplary. People power is institutionalised in our constitution."

The economy has been badly hit by the crisis, with the peso falling to a historic low of 55.50 to the dollar last week, although it was trading at around 46 in overseas trade on Saturday after being buoyed by Mr Estrada's downfall.

President Arroyo's first executive action would be to prohibit all government agencies from transacting business with her family, her aide, Mr Renato Corona, said.

Mrs Arroyo has said she would clearly distance herself from Mr Estrada's style of government. It is unclear if he still faces a trial on charges of corruption and bribery.

Impeachment proceedings against him collapsed last week when the Senate, by the tightest of margins, voted to disallow evidence which the prosecution claims would have shown he amassed $60 million illegally.

Meanwhile, the UN yesterday praised the peaceful change of leadership in the Philippines.

The UN Secretary General, Mr Kofi Annan, said the transition in the embattled country was "a victory for democracy".

China described the new President as a friend of Beijing.

Reuters adds: The European Union praised the peaceful transition of power in the Philippines.

"The European Union welcomes the fact that the change of political leadership in the Republic of the Philippines has been taking place in a peaceful manner," the EU said in a statement released by its current president, Sweden.

The EU was looking forward to working together with President Arroyo and her administration in addressing the many challenges before them and to enhancing the relationship between the Philippines and the EU, it said.

Singapore has expressed confidence that President Arroyo will restore confidence in the Philippines. The Prime Minister, Mr Goh Chok Tong, wished Mrs Arroyo "every success as you embark on this challenge."