Arroyo faces renewed attacks after admission

MANILA, Tuesday (Reuters)

Opponents of Philippine President Gloria Macapagal Arroyo stepped up calls for her to resign on Tuesday after she admitted talking to an election official during vote-counting, but analysts said she appeared safe for now.

Arroyo saying late on Monday she had a "lapse in judgment" looked set to embolden the opposition, which says recordings of telephone conversations prove she cheated in last year's poll.

But analysts doubt the opposition has the strength to impeach Arroyo or the popular support needed to stir up the kind of huge protests that forced Joseph Estrada from the presidency in 2001.

"Every sin needs an atonement. So when she admitted to being on the tapes, she had to resign," said opposition Senator Panfilo Lacson, who came third in the presidential election.

In a carefully worded televised statement late on Monday, Arroyo said she spoke to an election official and was sorry, but denied she had tried to influence the election result.

The opposition, which also accuses the president's family members of taking kickbacks from illegal gambling, has said the conversation was with election commissioner Virgilio Garcillano.

Local media have reported that she discussed the vote tally in various districts and received assurances that her losses would be limited.

By admitting a lapse in judgment but denying wrongdoing, Arroyo took an "intelligent, calculated risk" that is likely to deflate the pressure, said Simon Flint, head of foreign exchange strategy for emerging Asia at Merrill Lynch in Singapore.

"The worst may not be over but the worst of the worst -- the fear we had that this could really escalate out of control -- is less of a possibility today than it was 24 hours ago," he said. "If the opposition do have a plan and they do have more evidence against her, then they're not executing the plan particularly well."

Analysts see little chance of Arroyo quitting and say it will be very difficult for the opposition to impeach the president because of her majorities in both houses of Congress.

Protests against Arroyo in recent weeks have been relatively small and she still has the support of key sectors such as the middle class, the Catholic Church and the military.

The head of a congressional panel investigating the recordings said that the tapes should now be played in Congress so law makers could decide for themselves whether Arroyo had tried to influence the election.