Morsi working on formation of new government

Published June 26th, 2012 - 08:04 GMT

Mohamed Morsi, the new Egyptian president, has been working since Monday to form a government. Mr. Morsi began his consultations to form the new government, without waiting for the inauguration, said one of his spokesman, Mohammed Hassan Nermine.

"He has already begun to examine a list of names. He will announce the new government soon," he added. A military source said the transfer of powers between the Supreme Council of the Armed Forces (SCAF), and Morsi should take place until the end of June.

The new president is facing multiple challenges in the political, diplomatic and economic sectors.

The current Kamal al-Ganzouri government installed in November 2011, resigned Monday.

The Al-Shourouq newspaper, published a headline saying "The revolution arrives at the presidential palace," and called Morsi to choose a prime minister and vice-presidents who are not part of the Muslim Brotherhoods like him. This in order to ensure a balance between the various political forces.

Indeed, the main political challenge of Morsiis to achieve balance between the liberal parties and Islamist movements behind the revolution. Another challenge is to cope with the Army, which still retains the legislative powers. In this context, unlike other leaders of his party, Morsi is respectful of the institutions. He met Monday the head of the SCAF, Marshal Hussein Tantawi, and paid tribute to the armed forces which have ensured the holding of the presidential election.

He also faces major challenges on the diplomatic level. His first day was marred after an Iranian news the agency published an interview with him, where he said he wanted to strength relations with Tehran and "revise" the peace accords with Israel. Morsi had denied such an interview ever took place.

In the economic sphere, however, a little ray of sunshine came to greet the election of Morsi. The Cairo Stock Exchange on Monday closed up by over 7.5%. The benchmark index, the EGX-30, reached 4,482.48 points - the highest level for more than a year. "An atmosphere of optimism prevailed in the market against a background of expectations of a return of political and economic stability after the announcement of the new president," said Waleed Abdeen, a financial analyst.

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