The US government, which had urged Mrs. Arroyo to lift the emergency declaration as soon as possible, welcomed Mrs. Arroyo’s announcement.
"The US welcomes the declaration lifting the state of national emergency. We look forward to continuing and deepening our cooperation with the Philippines," US embassy press attaché Matthew Lussenhop told a press briefing.
He declined to comment if Mrs. Arroyo’s decision was influenced by Washington’s views. "I leave it to the President. The reason is pretty clear. I would not speculate as to reasons."
The United States will continue to observe the situation in the Philippines very closely, Lussenhop said. "As an embassy, we are monitoring the situation so we have knowledge of the situation in the country."
US Assistant Secretary of State Christopher Hill and Mrs. Arroyo discussed the emergency declaration during a meeting Tuesday at Malacañang, Lussenhop said. He did not elaborate.
Hill arrived in Manila on Tuesday for a previously scheduled three-day visit.
Earlier, the local Catholic Church’s policy-making body, the Catholic Bishops Conference of the Philippines (CBCP), had advised Mrs. Arroyo to lift Proclamation 1017, saying the emergency declaration would only elicit more resistance from anti-Arroyo groups and plunge the nation into deeper crisis.
"This is a welcome development. Our basic freedoms are necessary to pursue the truth," CBCP vice president Bishop Antonio Ledesma of Ipil, Zamboanga del Norte said in a mobile phone text message.
The CBCP, which wields influence in this predominantly Catholic nation, was set to discuss Proclamation 1017 at their March 9 permanent council meeting. A message of criticism could deal a stinging blow to the Arroyo administration.
Last year, the Church was crucial in maintaining support for Mrs. Arroyo when it refused to back opposition calls for Mrs. Arroyo’s ouster over allegations of vote-rigging in the 2004 presidential election.
It, however, maintained that the truth behind the cheating accusations should still be pursued through peaceful and legal means, saying efforts to uncover them were obstructed by "acts of evasion and obstruction of truth."
The business community lauded the lifting of the declaration amid fears that it might plunge the country into deeper crisis and hurt the country’s economic recovery efforts.
"The President acted on the urgent concerns of the business sector and this indeed sends a strong signal that the well-being of the economy is her priority," Rene Soriano, president of the Employers Confederation of the Philippines, said in a statement.
"We are particularly concerned that Proclamation 1017 is creating a long-term negative impact on the economy and the image of the country as a stable and vibrant economy," the Management Association of the Philippines said in a statement.
"We recognize the President’s authority to call out the armed forces to suppress rebellion and lawless violence. However, we believe that Proclamation 1017 threatens freedom of the press and expression, as well as freedom of assembly, which are guaranteed by our Constitution," it said.
One of the country’s largest labor organizations, the Federation of Free Workers, said the lifting of the emergency declaration was "positive for job creation and the recovery of the national economy."
Mrs. Arroyo issued Proclamation No. 1017 declaring a "state of national emergency" Friday last week to counter what she said was a "tactical alliance" of communist rebels, "military adventurists" and elements in the political opposition aimed at toppling her.
She came under intense fire from opposition activists and civil libertarians, who said her order was unconstitutional and virtually imposed martial law.
They worried that a string of warrantless arrests, a ban on rallies and a raid on a critical newspaper would jeopardize political freedoms and fan unrest.
The Publishers Association of the Philippines welcomed the lifting of Proclamation 1017.
PAPI president Juan Dayang said Mrs. Arroyo’s decision belied fears of a "creeping martial law" as alleged by other media organizations.
"It justifies my position urging members of the community press to be vigilant but to remain cooperative with the government," Dayang said in statement urging association members to "accentuate the positive in their reporting" to help the economy get back on its feet.
Left-leaning activists, however, urged more vigilance as they anticipated the government would continue its crackdown on plotters of the alleged coup attempt.
Various militant groups deemed the lifting of Proclamation 1017 as a mere "paper" move, noting that General Order No. 5 — the emergency declaration’s implementing order — still remained.
"The fight is not yet over," said Dr. Carol Araullo, chairperson of the Bagong Alyansang Makabayan (Bayan). "The lifting of the state of emergency may be lip service after all. To prove her sincerity, Arroyo must stop political persecution against dissenters."
According to Araullo, the progressive party-list representatives are still "under siege" as rebellion charges have been filed against them, along with other figures considered "enemies of the state."
Renato Reyes, secretary general of Bayan, called Mrs. Arroyo’s move a "nominal lifting," pointing out that General Order No. 5 remained in effect.
"It is just in paper and in words, but just the same the elements of (Proclamation) 1017 will stay there to massacre civil liberties and crush anti-GMA forces. The lifting is not a guarantee that everything will be all right. The harassment of the media, the attack on the left and right will remain in the name of Arroyo’s political survival," said Gerry Corpuz, information officer of fisher folk group Pamalakaya.
The presidential order directs the military and the police to "carry out the necessary and appropriate actions and measures to suppress and prevent acts of terrorism and lawless violence."
Former University of the Philippines president Francisco Nemenzo believes that the lifting of the state of emergency does not let Mrs. Arroyo off the hook.
"Her crisis of legitimacy has worsened, which is the real cause of economic slump. Only her removal from power will solve the country’s current crisis and the people will persist until she is ousted," Nemenzo, who is also chairman of the anti-Arroyo Laban ng Masa, said.
Wilson Fortaleza, a leader of labor group Sanlakas, doubts the government’s sincerity in lifting the emergency declaration.
"The proof of the pudding is in the eating," Fortaleza said. "GMA can’t just say Proclamation 1017 is lifted while the persecution of anti-GMA activists, and the mass media, freedom of expression and peaceful assembly remain suppressed." — With Mayen Jaymalin, Katherine Adraneda