MANILA, Philippines – President Arroyo shrugged off an impeachment complaint filed hours before her state of the nation address yesterday, declining to even mention the crisis as she called for overhauling the Philippines’ unstable democracy.

With opposition lawmakers boycotting her speech and 25,000 protesters outside demanding her resignation, Ms. Arroyo said Congress should quickly come up with constitutional amendments to end the American-style presidency and switch to a parliamentary form of government.

“Ours is a country divided,” said Ms. Arroyo, who has come under pressure to quit with nearly five years left in her term over allegations that she rigged last year’s election. “One is a Philippines whose economy … is now poised for takeoff. The other … has become a hindrance to progress.

“The system clearly needs fundamental change – and the sooner, the better.”

Changing to a parliamentary system – where lawmakers can vote out a sitting government instead of resorting to popular revolts such as those that have forced out two leaders since 1986 – could cut Ms. Arroyo’s term short, since a successful referendum on the changes likely would be followed by fresh elections.

But it would give her a somewhat graceful exit from the mess that has paralyzed her government, and perhaps leave a legacy to end the “people power” revolts that seem to have outlived their usefulness and become a tool for destabilization.

Still, opponents pointed out that she gave no schedule for switching systems – a former president, Fidel Ramos, has suggested fresh elections as early as May – and made no further mention of the “truth commission” that she announced last week would look into allegations against her.

The 10-count impeachment complaint, filed in the House by opposition lawmakers, claims Ms. Arroyo “cheated and lied” to obtain and hold power and could be impeached on four grounds.

“By so flouting justice and the rule of law, she has committed an unforgivable outrage against the Filipino people,” it said.

Ms. Arroyo has denied manipulating the May 2004 ballot by discussing vote counting with an election official before she was declared the winner. She said she is ready to face an impeachment trial to clear her name and announced the “truth commission” also will probe the allegations against her.

Ms. Arroyo’s aides have moved to block the complaint on a legal technicality, and backers so far only have half the 79 signatures they need to send it to the Senate for trial. It is also unclear whether it can be reconciled with another complaint, considered weaker, that was filed June 27 by a private lawyer.

House Speaker Jose de Venecia said he realized that the impeachment process could destabilize the economy “at a time investors need political stability most of all.”

“But I also feel that we need to put this issue behind us – and that the president’s best recourse is to confront the accusations against her in the manner the constitution prescribes,” he said.

Left-wing lawmakers have warned of a popular revolt – like those that ousted late dictator Ferdinand Marcos in 1986 and President Estrada in 2001 – if pro-Arroyo lawmakers, who have a strong majority in the House of Representatives, kill or weaken the complaint.

In keeping with her business-as-usual strategy in dealing with the 2-month-old crisis, Ms. Arroyo, looking tired with bags under her eyes, touted her administration’s accomplishments in generating 4 million jobs over the last four years, fighting drugs, curtailing kidnappings and easing a bloody Muslim separatist insurgency in the south.

She avoided gridlock by flying in a helicopter over the protesters to the House of Representatives in suburban Quezon City where she delivered her address. About 5,000 people turned out to support her and were kept separate from the anti-Arroyo protesters, who faced a heavy cordon of riot police and troops.