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AlMal Newspaper: No growth under Military Rule

Egyptian NP AlMal claims that the slow transfer of military to civilian rule negatively affects the local stock market, tourism & investments.
The economic outlook became bleak after the Supreme Council of Armed Forces (SCAF) released decisions about dissolving the parliament, forming an interim constitution, and thus, limiting the coming president’s powers, according to AlMal newspaper. Additionally, American President Barack Obama has warned that the United States would freeze military and financial aid to Egypt, if SCAF does not fully transfer power to civilians.

According to the print newspaper, the economic sector was just starting to loosen up and develop positively as SCAF had promised to hand over power on the 30th of June 2012, yet the way issues are being dealt with at the moment seems to contradict with that statement.

Another factor bringing down the Egyptian economy is the uncertainty about the winner of the presidential elections and possible clashes between the followers of each candidate: former Prime Minister under ousted president Hosni Mubarak Ahmed Shafik, and Muslim Brotherhood candidate Dr. Mohammed Morsi. Each campaign already announced the victory of its candidate.

The stock market has severely retreated for the past two days, as investors are selling due to worries about the continuity of instable political circumstances. Indications show that SCAF will remain in power even after the 30th of June 2012, since through its interim constitution, the Council will be in charge of the legislative power for at least four and a half months, until a new parliament is elected and a new constitution is written, according to AlMal.

Some businessmen and officials told AlMal that it does not matter who wins the elections; as long as there are political conflicts and clashes, the buy-and-sell-circulation will be negatively affected.

AlMal quotes sources saying that political stability would not come unless SCAF sticks to the promise it made to the political forces and movements, which gives the coming president all the power to independently rule the country.