Administration lawmakers: Lifting of state of emergency to boost economy

The decision of President Arroyo to lift the emergency decree will have a positive impact on the country’s economy, six administration lawmakers said yesterday.

One of the President’s economic advisers, Tarlac Rep. Jesli Lapus, said the decision to lift Proclamation 1017 will have beneficial effects on the country’s economy and further strengthen the value of the peso.

Lapus said the improving security situation following the week-long coup threats is expected to accelerate in the coming weeks and the peso might even breach the 50 to $1 level.

"Who knows, the peso may hit 50 to $1 in the next few days and even higher like 47.50 to $1 in the coming months as projected by the Hong Kong and Shanghai Banking Corp. (HSBC) if our positive fiscal performance last year would be sustained," Lapus predicted.

Lapus commended Mrs. Arroyo for her decision to lift the controversial emergency decree since it finally placated the fears of local and foreign businessmen over the country’s political condition.

The lifting of the emergency declaration also indicated the government was on top of the situation, he said.

"The President correctly lifted the state of emergency because the conditions to retain it are no longer there," Lapus said.

"The situation has undoubtedly stabilized and credit goes to the decisive action taken by the President," he said.

For his part, Davao Oriental Rep. Joel Mayo Almario said the peso appreciation is a "strong indication" that most Filipinos are "fed up with the opposition’s tactics and are supporting the President’s firm resolve to lead the country to genuine economic growth."

He said the strong showing of the peso indicated "a vote of confidence in the decisive steps taken by the President to quell destabilization attempts. We expect a continuous surge of the peso and stock market."

Nueva Ecija Rep. Aurelio Umali also said the lifting of Proclamation 1017 will have "positive effects on the economy which, together with public security, was the main concern of government in declaring a state of national emergency last week.

"The President deserves praise for basing her actions on hard facts and showing leadership amidst crisis and afterwards, displaying a willingness to adjust based on the advice of experts and the public pulse," Umali added.

Parañaque Rep. Eduardo Zialcita, for his part, said Mrs. Arroyo’s decision to lift Proclamation 1017 will have a positive impact on the economy since "investors will be more encouraged to put up trade and investments here under a stable situation based on effective government."

Zamboanga City Rep. Isidoro Real said the President was vindicated in issuing Proclamation 1017 and correct in her decision to revoke it at this time.

"All events point to her great capability as a leader and her resolve to protect the country at all cost."

Baguio City Rep. Mauricio Domogan said the lifting was justified since there were no more threats to the country’s security.

"We expect this to boost the financial markets and the peso as investors have batted for an early lifting of the state of emergency," he said.