Tuesday, February 1, 2011

Egypt: the mobilization is not weakening, the economy runs out of steam

On the seventh day of an unprecedented challenge in Egypt Monday, Jan. 31, tens of thousands of protesters again gathered in Tahrir Square in central Cairo, chanting, "Mubarak outside!" and singing the national anthem. A day that ended with the intervention of Omar Suleiman television, called this weekend Vice-President of Egypt, which announced qu'Hosni Mubarak had asked him to initiate a dialogue with all political parties.

He clarified that this dialogue would include constitutional reforms and laws, a requirement of the demonstrators. In the capital paralyzed by a general strike call, the soldiers watched the crowd to join those who had camped out all night on the spot by calling the army to choose "between Egypt and Mubarak." Late afternoon, the soldiers, who have not outlined any move to disperse the protesters, said they would not use force against the demonstrators, said it was "legitimate" claims.

>> Read: Relive the events of the day and the army considers "legitimate" claims of the Egyptian people in parallel events, residents continue to organize to defend their neighborhoods. Vigilante groups had indeed been formed when the police had mysteriously disappeared over the last two days, leaving the city a prey to looters and inmates escaped from prison.

But the new cabinet is very similar to the previous named Saturday: Foreign Minister Ahmed Aboul Gheit, is renewed, as well as that of Defence, General Mohamed Hussein Tantawi, who will also exercise the functions of Deputy Prime Minister. Mr. Mubarak also appointed Gen. Murad Mowafi, former governor of northern Sinai, at the head of intelligence.

It replaces the influential Omar Suleiman, who was promoted vice-president Saturday, a position abolished thirty years ago and could pave the way for a transition. On the seventh day of protests, the country is partly paralyzed. Banks and stock exchanges are closed for a second straight day and most ATMs are empty.

In two days, after the protests began on January 25, Egyptians and foreign investors had already transferred hundreds of millions of dollars out of Egypt. The rating agency Moody's downgraded Monday by one notch the rating of Egypt and plans to further reduce the medium term. Sign of growing concern, some foreign firms have announced the suspension of their activities, such as the giant Danish shipping and oil AP Moller-Maersk, the French cement manufacturer Lafarge and the automaker Nissan.

Others, such as Saint-Gobain or Crédit Agricole, France Telecom had previously decided to evacuate families of their expatriate staff and some or all of their employees.

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