Philippines Vice President Gloria Arroyo called on President Estrada to resign, and cited him as the reason for the economy's contraction as shown by the failure of his economists to buoy up the peso's free fall, despite raising interest rates.
"It pains me to say that resignation is the solution," Arroyo said, when asked to identify the political solution required to resolve her country's financial crisis.
"The problem reflected by the pesos decline is a political one which requires a political solution," said Arroyo, adding: "It is futile to resort to a monetary policy tool like interest rates to resolve a crisis of confidence."
Arroyo, an economist, resigned as Estrada's social welfare secretary after Ilocos Sur Governor Luis Singson said on October 9 that the president had received an estimated $ 8.7 million in bribes from illegal gambling operators in need of protection.
The nation was doubly shocked when Singson said Estrada allegedly took a $ 2.7 million kickback from the $ 4.2 million tobacco tax.
Estrada's cronyism was an overriding reason for his fall, said Arroyo, adding the gambling scandal was "only the last straw hair that broke the camel's back".
"Now that the economy is on the verge of collapse,
self-restraint has to give way to the urgency of the situation," said Arroyo, who had refused to call for Estrada's resignation since the gambling and kick-back scandals erupted two weeks ago.
"My listening posts include the poor," she said, adding there is a widespread clamour for Estrada's resignation, "from the ground and on a nationwide level".
Presidential pardon
"I don't have to add insult to injury by talking of face saving now (for Estrada)," said Arroyo, when asked if she would grant Estrada presidential pardon in case she became president, being second in line.
Arroyo said the impeachment campaign launched by the opposition in the lower house of Congress, "takes too long to be resolved and the economy cannot afford a further beating."
She also discarded Senator Juan Ponce Enrile's call for snap polls, saying:"It is unconstitutional and the vice president's office will not be vacant."
It is required for Estrada and Arroyo to resign before the Senate president, as acting leader, could call for snap polls and the amendment of the constitution for the said exercise.
When asked how she finds taking over Estrada's mess, Arroyo said" "It's hard. But we will have to work for a year to build confidence." Citing steps for these objectives, Arroyo said: "We will create a level playing field and an atmosphere of transparency."
Talking presidential, she said she would not allow negotiated business transactions and would keep the presidency, "away from the boardroom brawl of private business".
She also said she would, "reach out" to the separatist Moro Islamic Liberation Front, adding she is willing to talk with them abroad. She vowed to talk to the Abu Sayyaf group and the Communist Party of the Philippines.