'No need for emergency power' for Philippine President Arroyo

Manila: The Congress as well as the Presidential Palace have categorically ruled out the possibility of giving President Gloria Arroyo emergency powers at this time, to address the rising cost of food and fuel.

"I believe the situation is manageable. We are in a better position because of our macroeconomic fundamentals that allow us to withstand this external shock," Arroyo's spokesman, Ignacio Bunye said.

Bunye said the government at this point is not likely to take drastic steps internally since any economic movements in the country are largely the result of developments outside the country.

External developments, particularly the dramatic increase in the price of imported fuel and the consequent rise in the cost of commodities, have resulted to a 9.6 per cent inflation rate in May.

The Philippines imports 70 per cent of its fuel requirements from foreign sources and any movements in the price of oil has an immediate impact on the country's economy.

Bunye said given the apparent helplessness of the government to curb the effects of inflation, it can only do as much as to cushion consumers from much of its impact.

But government is not totally ruling out the possibility of taking drastic measures in the event it is hard pressed by the situation on fuel and food. Bunye pointed out that Arroyo had issued Executive Order 728 creating the National Food and Energy Council (NFEC).

The NFEC's mandate is to advise the President and Congress when the exercise of emergency powers would be required to address food and oil problems.

"Right now we don't see a need for the President to declare a state of emergency, but it is useful for the President to have one in case it is needed. We don't want a situation where we would be fumbling to grab the emergency button when there is none. So we are just preparing," Arroyo's legal adviser Sergio Apostol said.

However, before Arroyo can be granted emergency powers, she needs to convince the Senate and the House of Representatives that her current authority needs to be expanded.

Under the Constitution, the President needs the support of majority in the Senate and House before she can be given emergency powers.

In the meantime, some key officials like House Speaker Prospero Nograles and Senate President Manuel Villar seem unconvinced that Arroyo needs emergency authority.

"The President has enough executive powers to cope with the situation. Emergency powers are not needed," Nograles said.

"To the rabble-rousers: Do not sow public intrigues or try to cause our people to think negatively. Our government is in full control and we have good economic fundamentals, which are in place. We will weather the economic storm," he added.