Egypt's Islamist President Mohamed Morsi said Egyptians had freely chosen a constitution with “complete transparency," and he renewed a call for dialogue to address the opposition's issues as the nation moves along what he described as a path to democracy. Morsi, facing mounting criticism from an opposition movement concerned that he and the Muslim Brotherhood are monopolizing power, said he asked Prime Minister Hesham Kandil to make the “necessary" changes in the Cabinet and vowed to work to boost a battered economy. A diversity of views is a healthy manifestation in a nation moving toward democracy, he said. The comments yesterday marked a nod to the tensions that have undercut recovery efforts since Hosni Mubarak's ouster as Egypt's leader last year. The unrest is likely to increase as the opposition gears up ahead of the expected start in two months of parliamentary elections that will show whether the Brotherhood can maintain the majority it enjoyed under the now- dissolved legislature or lose ground to secular opponents. “We do not want to return to an era of the opinion of one," Morsi said in televised comments a day after officials announced the constitution was approved by 64 percent of those voting. The new charter, he said, makes “the president a servant of the people with defined power and not an absolute master or a tyrannical ruler." Ratings Lowered The two-stage referendum that ended Dec. 22 was preceded by clashes between Mursi's Islamist backers and a fragmented opposition of secularists, minority Christians and youth activists. The tensions have further roiled an economy battered in the wake of last year's uprising, with Standard & Poor's on Dec. 24 pushing deeper into junk status Egypt's sovereign rating. The government “is playing its role as best as it can under difficult circumstances," Morsi said. In the “coming days," he said, there will be new projects and a package of incentives for investors to boost the economy. The ratings agency cited the current political instability and its potential to negatively impact economic revival efforts in a nation where foreign reserves remain almost 60 percent below their pre-uprising levels. The central bank issued a statement to offer reassurances it was doing all that was necessary to guarantee deposits. ‘Necessary Changes' “I will exert my utmost efforts, together with you, to boost the Egyptian economy, which is facing big challenges but also has big opportunities for growth," Morsi said. “I will make all the necessary changes needed for the task of growth, development and productivity." Morsi's critics maintain the constitution, which was hastily approved by the Islamist-dominated body that drafted it, enshrines Islamic law at the expense of certain freedoms and doesn't reflect the nation's diversity. Almost 70 percent of the roughly 52 million eligible to vote abstained from the balloting. Egypt's constitution is “void as it conflicts with certain peremptory norms of international law," such as freedom of belief and expression, Nobel laureate Mohamed ElBaradei said on his Twitter account yesterday. Reflecting the rifts that have deepened since he took office in June, Morsi said dialogue is needed to complete the nation's political road map and address the economic challenges. The opposition has largely rejected calls for dialogue. Banks Downgraded “The increased polarization between political forces is likely to weaken the sovereign's ability to deliver sustainable public finances, promote balance growth, and respond to further economic or political shocks," S&P said in a statement yesterday after cutting the ratings of three Egyptian banks. Morsi said he had passed to the until-now largely advisory Shura Council, parliament's upper house, legislative authority he had held after a court ordered the dissolution of parliament's lower chamber. The Council yesterday swore in 90 new members Morsi had appointed days earlier, readying itself for its new role until the parliamentary elections start. Morsi, a U.S.-trained engineer, said he was consulting with his prime minister “to make the necessary ministerial changes appropriate for this stage to face all the problems" until a new parliament is formed. Many of the changes the government will have to make, such as curbing subsidies that consume roughly a quarter of government spending, are likely to be poorly received in a nation where, according to government figures, the number of people living under the poverty line climbed to 25 percent in 2011, compared to 21 percent the previous year. An effort earlier this month to introduce new taxes on some items, such as cigarettes, sparked anger and prompted the government to backtrack from the decision. Bloomberg
