Philippine President Gloria Macapagal Arroyo delivers her State of the Nation Address at the Philippine Congress in Quezon city north of Manila July 25, 2005.

MANILA, July 25 (Xinhuanet) -- Philippine president Gloria Macapagal-Arroyo delivered her annual state of the nation address (SONA) on the joint session of the congress Monday afternoon, urging the congress to amend the constitution through a constituent assembly.

    Arroyo said in her address that the Philippine political system has degenerated, and that this is the other side of the good economic story. "The system clearly needs fundamental change, and the sooner, the better. It is time to start the great debate on Charter change."

    Arroyo said, "The mode of Charter change is the exclusive prerogative of congress but a constituent assembly may well give our people the quickest reform."

    She added that it will be a future objective to establish "a parliamentary system similar to that of our progressive nations in the region," saying a federal form of government would be the best solution to the country's political problems.

    In her televised SONA speech, which was boycotted by dozens of opposition lawmakers, Arroyo said the nation is divided by the turmoil and called for reunion of the political parties, saying "now is not the time for divisiveness, and while there is no avoiding partisan politics, there could be a concerted effort on both sides to limit the collateral damage on a country poised for take-off."

    Referring to the achievements of her administration, Arroyo also cited the 2-percent growth in the country's economy, and thecreation of four million jobs in the last four years. She told the story of 69 million beneficiaries of health care insurance. She cited the decline of drug menace, kidnappings and the insurgency in the South, as well as the country's revenue increase and the breakaway from further debts.

    Arroyo ended her speech by appealing to strive for one Philippines, "not a country of this or that president" but one that shares a country's passion.

(Xinhua/AFP photo)

    Before, during and after Arroyo's address, the president was applauded for minutes in the hall of the House of Representatives, with her supporting congressmen standing ovation, and crowd chants"GMA! GMA!" (for Gloria Pacapagal-Arroyo)

    Outside the hall, there are up to 40,000 protesters rallying around. Police put up barbwired fence and road blocks to stop bothpro and anti-Arroyo rallyists from heading to Batasan Complex where president Arroyo speaks before Congress.

    Arroyo took a helicopter to Batasan Complex from the presidential palace before she delivered the SONA amid political unrest and mass rallies.

    The opposition has filed a revised complaint of four impeachable charges against Arroyo Monday morning, aiming to put it as top agenda in this session of the congress.

    After the SONA, Senate President Franklin Drilon, however, warned that Arroyo's proposal to change the Constitution through a constituent assembly will not pass the Senate.

    Drilon reiterated his stance calling for Arroyo's resignation in his opening address of the second session of the congress Monday morning.

    Defying demands that she quit over allegations of election fraud, Arroyo has been rebuilding her economic team and shoring upher support base after a wave of resignations and defections appeared to be driving her four-year presidency to a rapid end. Enditem