President Macapagal-Arroyo begins forming Cabinet

President Macapagal-Arroyo begins forming Cabinet

MANILA (Agencies): The Philippines' new president turned
quickly Sunday from celebrating her sudden rise to power to the
difficult task of rebuilding national unity and business
confidence, both devastated by a three-month political crisis.

President Gloria Macapagal-Arroyo, swept to power on Saturday
after three days of massive protests and the stunning resignation
of top officials, met with key supporters and announced several
members of her new economic team.

Her first appointment, Finance Secretary Alberto Romulo,
appealed for support for the "great task of rebuilding our
nation."

Macapagal-Arroyo, a 53-year-old economist who was Estrada's
vice president, is widely believed to be better equipped than her
predecessor - a former movie star and college dropout - to revive
the stagnant economy. Financial markets, badly battered by the
crisis, are expected to surge on Monday.

But the initial euphoria is likely to cool quickly as the
country focuses on the daunting problems the new administration
faces.

"She doesn't really have a personal mandate as president,"
said analyst and newspaper columnist Nelson Navarro. "She just
happened to be the constitutional successor ... and has to
quickly revive her popularity."

Governments around the world congratulated the new Philippine
president and praised Filipinos for a transfer of power unmarred
by violence.

"The United States is pleased that the presidential crisis in
the Philippines has been resolved without violence and in
accordance with democratic and constitutional procedures," the
U.S. Embassy in Manila said in a statement.

In Australia, Prime Minister John Howard congratulated
Macapagal-Arroyo. Government officials denied rumors that they
had received a request from Philippine authorities to allow
Estrada to fly to there.

Meanwhile, U.N. Secretary-General Kofi Annan, visiting Beijing
to pressure China on its human-rights practices, also had a
message for the Philippines.

"Change ... should be peaceful," Annan said. "I think that is
what we should all pray for."

British Prime Minister Tony Blair sent a message of
congratulations to Arroyo welcoming the peaceful resolution of
the crisis.

China also called Arroyo "a friend" and said it was looking
forward to maintaining friendly relations with the Philippines.

"Mrs. Arroyo is a friend of China who last year paid a
successful visit," foreign ministry spokesman Zhu Bangzao said.

German President Johannes Rau issued a statement wishing
Arroyo "lots of success following the recent difficulties faced
by democracy in the Philippines."

Japan pledged to support the new administration and said it
expected the new government to be "launched smoothly."

"The government of Japan will continue to closely cooperate
with the new government," Foreign Minister Yohei Kono said.

Seoul's foreign ministry said it recognized the difficulties
the country had to overcome to achieve a peaceful transition of
power.

"We welcome that the Philippines has overcome the political
difficulties through democratic procedures to allow the
inauguration of new President Gloria Macapagal Arroyo in a
peaceful manner," it said.

In Bangkok, the Thai foreign ministry noted Estrada's ousting
was in accordance with democratic process and the will of the
majority of the Philippine people.

In Osaka, visiting Malaysian Prime Minister Mahathir Mohamad
added he was happy the leadership issue had been resolved.

"I am confident that new Philippine President Gloria Macapagal
Arroyo will cooperate with Malaysia," he said.

Prince Norodom Ranariddh, president of Cambodia's national
assembly, said Phnom Penh should not interfere in other
countries' internal affairs, "especially the Philippines which is
a member of our ASEAN brotherhood."

Romulo, a former senator and budget secretary under former
President Corazon Aquino, who took power after Marcos' ouster,
faces a ballooning budget deficit, slowing exports, rising
interest rates and surging inflation.

Analysts say Asian markets will go into the Chinese New Year
holiday in buoyant mood with an end to at least some regional
political uncertainty after Joseph Estrada finally stepped down
as president of the Philippines.

"It's obviously good news for the Philippines but I actually
think this is more important for the region," said Steve Brice,
treasury economy at Standard Chartered in Singapore.