"The nation’s peace of mind is disturbed by political developments that are telegraphing signals of instability," President Arroyo said in a statement after the peso and the financial markets were rocked by the standoff.
Mrs. Arroyo said "such controversial confrontations between powerful institutions have a way of setting back our economy and driving more of our people into hardship."
The peso hit an intra-day low of 55.59 to the dollar yesterday morning, near its all-time low of 55.75, dealers said. It closed on Monday at 55.500 to the dollar.
"I appeal for prudence and constructive action among our leaders. We have to end the impeachment controversy at once but we want to make sure this will end well in the most proper, principled and righteous way," Mrs. Arroyo added.
The President directed her appeal to both congressmen and the judiciary "to heed the supreme welfare of the people" in coming up with an acceptable compromise to avert a possible constitutional crisis.
Her appeal was contained in an official statement released by Malacañang yesterday, after Mrs. Arroyo was informed about the "intransigence" of both parties involved in the negotiations brokered by Speaker Jose de Venecia Jr.
De Venecia said he would meet legislators who initiated the impeachment complaint against Davide to arrive at a "win-win" situation to try and find a solution to "avert this damaging confrontation."
The Palace was represented in the negotiations by Presidential Legislative Liaison Office (PLLO) Secretary Gabriel Claudio.
Over a third of the 226-member House of Representatives want Davide, the Philippines’ fifth most senior official and fifth in line to the presidential succession, impeached and put on trial in the Senate for his refusal to open for perusal the judiciary’s budget books to Congress.
Davide is accused of misusing P48 million of the Judiciary Development Fund (JDF).
Davide insists Congress does not have powers to oversee an equal branch of government, and that in any event, Commission on Audit (COA) officials have pronounced the books to be in order.
De Venecia wants Davide to concede to congressional oversight over the funds, and for the opposition in return to withdraw the impeachment complaint.
The Speaker warned that unless both sides backed down, Congress would be unable to pass the 2004 budget or act on economic and social reform bills endorsed by Mrs. Arroyo.
"Once the impeachment complaint reaches the Senate for trial, we may as well say goodbye to the budget, not to mention the economic and social legislation that will be held hostage and will not be taken up anymore," De Venecia said.
Earlier, De Venecia said he had until yesterday to head off the crisis, otherwise the House would be obliged under the Constitution to transmit the impeachment complaint to the Senate for trial. – With AFP