Egypt's leader retains main ministers as he seeks to stabilise economy

http://www.theguardian.com/world/2014/jun/09/egypt-leader-retains-ministers-economy-al-sisi

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Abdel Fattah al-Sisi, the newly inaugurated president of Egypt, reappointed the prime minister, Ibrahim Mehleb, on Monday, signalling continuity as he sets out to fix the economy and overcome political divisions after a long period of turmoil and bloodshed.

In comments carried by the state news agency, Mehleb said the existing government would stay on in a caretaker role until he forms a new cabinet. Consultations had not yet begun, he said, although officials have said many of the leading ministers, such as finance, are likely to remain unchanged.

Sisi, who as armed forces chief toppled the Islamist president Mohamed Morsi last July following mass protests, was sworn in on Sunday in a ceremony attended by few western allies who are concerned by a crackdown on dissent.

While Sisi quit the military in March, a lower-than-expected turnout in last month's presidential elections failed to give him a strong enough mandate to take tough measures. The economy has been harmed by three years of instability and regular violence, which has scared away foreign investors and tourists.

Keeping the main ministers in place could allow the new president to implement quickly the kind of reforms that the United Arab Emirates has been encouraging. The UAE was one of the Gulf Arab states that gave Egypt billions of dollars in aid after Morsi's fall.

Fawaz Gerges, professor of Middle East studies at the London School of Economics, said Sisi had to tackle the problems that are undermining Egyptians' living standards and state finances.

"He knows that he has a one-year honeymoon and that's why he has to deliver in terms of jobs, in terms of lowering inflation, in terms of the debt," he said. "That's why he's keeping Mehleb in place and that's why he's keeping the major portfolios."

One of the most important figures in Egypt's drive to resuscitate the economy is Hany Kadry Dimian, the finance minister, who is expected to stay on in the new administration. Educated at Columbia University in the United States, he was described by a senior European diplomat as the only minister who was able to deal professionally with the International Monetary Fund during a failed attempt under Morsi to secure a $4.8bn (£2.8bn)loan.

It was reported on Friday that western consultants were advising Egypt's government – apparently with Sisi's blessing – on an economic reform plan aimed at restarting talks on a IMF loan deal. The driving force behind the consulting project is the UAE, along with Saudi Arabia and Kuwait.

As de facto ruler since last summer, Sisi has driven Morsi's Muslim Brotherhood underground; hundreds of its supporters have been killed and thousands jailed, polarising the most populous Arab nation. However, Egypt's oldest and best organised Islamist movement has survived official repression for decades.

Sisi also faces a violent threat from militants based in the Sinai peninsula who are believed to have access to weapons smuggled from Libya, which is reported to be still in a state of chaos following Muammar Gaddafi's death in 2011. These militants have stepped up attacks on police and soldiers since Morsi's downfall.

Mehleb, 65, was appointed prime minister in February after previously serving as housing minister. A civil engineer, he is a former chairman of Arab Contractors, one of the region's largest construction companies, and worked briefly in Saudi Arabia, before joining the government last summer.