Tuesday, February 1, 2011

Mubarak calls on new government to maintain subsidies, lower prices

.- Egyptian President Hosni Mubarak, who faces a protest against his government on Sunday ordered his new cabinet to maintain subsidies, controlling inflation and creating more jobs, state television reported. The demonstrations in Egypt, 80 million people and key U.S. ally in the Arab world, are made not only to demand a new political system, but also against price hikes and the thick gap between rich and poor.

Mubarak changed his cabinet on Saturday, days after the unprecedented events in the country and appointed former air force chief, Ahmed Shafiq, as his new prime minister. But Shafiq has yet to name his team. "I need to bring back confidence in our economy," Mubarak said in a letter read on television Shafiq.

"I am confident in their ability to implement economic policies that are consistent with the utmost concern for the suffering of people," he said. "I want to stress that the provisions of subsidies in various forms should not be manipulated and that the government should challenge all forms of corruption," said Mubarak.

Mubarak's letter to Shafiq hinted that opposition parties could gain more freedom, but was short on details. "I also emphasize the need to look more seriously and effectively to political reforms, the Constitution and laws, through a broad dialogue with the parties (...) allowing greater participation," he said.

Mubarak said the Egyptians have expressed their legitimate demands for the protests last week, but "religious slogans" had infiltrated their ranks, referring to the Muslim Brotherhood, the largest opposition group in Egypt banned by the Government. The Egyptian president said the group had "fought to cause chaos", leading the disorder and looting in recent days.

The security forces suddenly withdrew from the streets of Egyptian cities on Friday after a day fighting the protests. A report by the state news agency Mena said Sunday night that Mubarak had discussed political reform with U.S. President, Barack Obama, in a phone call. "(Mubarak) expressed their determination to continue with further steps to political reform that meets the aspirations of the Egyptians of freedom, democratic society," the agency said.

In six days of rioting has killed more than 100 people. Financial markets reacted nervously to the riots.

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