Egypt’s President Mohammed Mursi signing a decree to put into effect the new constitution, in Cairo, yesterday.
CAIRO: Egyptian President Mohammed Mursi admitted yesterday that Egypt’s economy faces serious problems after he enacted a new, bitterly contested constitution that is supposed to help end political unrest and allow him to focus on the financial crisis.
Mursi, catapulted into power by his Islamist allies this year, believes that adopting the constitution quickly and holding elections to a permanent new parliament soon will help to end the long period of turmoil that has wrecked the economy.
The presidency announced yesterday that Mursi had formally approved the constitution, which was drafted by his Islamist allies, the previous evening, shortly after results showed that Egyptians had backed it in a referendum.
Keen to be seen as tough but fair, Mursi said it was time for all political forces to put aside their differences and start working together to bring economic stability. “I will make all efforts, together with you, to push forward the economy which faces huge challenges and has great opportunities to grow,” Mursi said in his first address to the nation since the adoption of the constitution.
The text won about 64 percent in a two-stage referendum, paving the way for a new parliamentary vote in about two months.
The main opposition group, which has until now boycotted all rounds of national unity talks led by Mursi’s office, said it had not changed its position. “The ongoing talks are farcical and theatrical,” Hussein Abdel Ghani, an opposition spokesman, said.
The charter states that the principles of Shariah are the main source of legislation and that Islamic authorities will be consulted on Shariah — a source of concern to the Christian minority and others.
In his speech, Mursi said he would introduce incentives to make Egypt an attractive place for business once again, and he would consider making changes in the cabinet as part of his plan.
He also appeared keen to seem tolerant of those who voted “no” in this month’s referendum. “This is their right,” he said. “Those who said ‘no’ and those who said ‘yes’, I thank you both because we do not want to return to the era of one opinion or fake majorities.”
Reuters
CAIRO: Egyptian President Mohammed Mursi signed into law a new constitution shaped by his Islamist allies, a bitterly contested document which he insists will help end political turmoil and allow him to focus on fixing the economy.
President Mursi will on Saturday address the upper house of parliament which now holds full legislative powers following the adoption of a new constitution, the council’s speaker said.
Under the new charter, legislative powers temporarily held by Mursi have now been transferred to the Islamist-dominated upper house of parliament, until a new lower house is elected in a vote expected in about two months.
In a national address hailing a new constitution backed by his Islamist allies, Mursi said he will reshuffle his government to tackle Egypt’s pressing economic problems, He was consulting with Prime Minister Hisham Qandil on the ministerial changes.
“I will deploy all my efforts to boost the Egyptian economy, which faces enormous challenges but has also big opportunities for growth, and I will make all the changes necessary for this task,” he said. In his first public remarks since a constitutional referendum held on December 15 and 22, Morsi struck a tone that was at turns conciliatory and defiant towards an opposition that has angrily rejected the charter.
Mursi acknowledged Egypt had gone through “disquieting” weeks of unrest, but said he was ready for political dialogue
Anxiety about a deepening political and economic crisis has gripped Egypt in past weeks, with many people rushing to buy dollars and withdraw their savings from banks. The Egyptian pound tumbled yesterday to its weakest level against the US currency in almost eight years. The new constitution, which the liberal opposition says betrays Egypt’s 2011 revolution by dangerously mixing religion and politics, has polarised the Arab world’s most populous nation and prompted occasionally violent protest on the streets.
The presidency said yesterday that Mursi had formally approved the constitution the previous evening, shortly after results showed that Egyptians had backed it in a referendum.
The text won about 64 percent of the vote, paving the way for a new parliamentary election in about two months.
The charter states that the principles of Shariah, Islamic law, are the main source of legislation and that Islamic authorities will be consulted on sharia - a source of concern to the Christian minority and others.
The referendum result marked yet another electoral victory for the Islamists since veteran autocrat Hosni Mubarak was toppled in 2011, following parliamentary elections last year and the presidential vote that brought Mursi to power this year.
Mursi’s government, which has accused opponents of damaging the economy by prolonging political upheaval, now faces the tough task of building a broad consensus as it prepares to impose austerity measures.
The atmosphere of crisis deepened this week after the Standard & Poor’s agency downgraded Egypt’s long-term credit rating and warned of a possible further cut. The government has imposed currency restrictions to reduce capital flight. The pound traded as low as 6.1775 against the dollar yesterday, close to its all-time low of 6.26 hit on October 14, 2004, on concerns that the government might devalue or tighten restrictions on currency movements.
Mursi, catapulted into power by his Islamist allies this year, believes adopting the constitution quickly and holding the vote for a permanent new parliament will help to end the long period of turmoil and uncertainty that has wrecked the economy.
Mursi’s government argues the constitution offers enough protection to all groups, and that many Egyptians are fed up with street protests that have prevented a return to normality and distracted the government from tackling the economy.
While stressing the importance of political stability to heal the economy, Mursi’s government has tried to play down the economic problems and appealed for unity despite the hardship.
“The government calls on the people not to worry about the country’s economy,” Parliamentary Affairs Minister Mohamed Mahsoub told the upper house in a speech. “We are not facing an economic problem but a political one and it is affecting the economic situation. We therefore urge all groups, opponents and brothers, to achieve wide reconciliation and consensus.”
Sharpening people’s concerns, the authorities imposed currency controls on Tuesday to prevent capital flight. Leaving or entering Egypt with more than $10,000 in cash is now banned.
Adding to the government’s long list of worries, Communications Minister Hany Mahmoud has resigned citing his “inability to adapt to the government’s working culture”. The opposition has condemned the new basic law as too Islamist, saying it could allow clerics to intervene in the lawmaking process and leave minority groups without proper legal protection. It said this month’s vote was marred by major violations.reuters/AFP
