Egypt plunges in deeper crisis

Thousands of protesters yesterday converged on the presidential palace in Cairo in a fresh bid to convince President Mohamed Morsi to give up what they see as dictatorial powers, and to postpone a referendum on a controversial new constitution.
While the marchers gathered peacefully, with the crowds shouting "We want to see the fall of the regime," there were fears the scene could turn violent if Morsi supporters turned out in strength for a counter-demonstration, as they did earlier this week.
On Wednesday, seven people died and more than 600 people were hurt in bloody clashes between the duelling camps.
The army on Thursday ordered the square in front of the presidential palace cleared. Troops deployed tanks and set up barbed-wire barricades blocking access.
Both Morsi's Islamist backers and the largely secular opposition have dug in their positions in the confrontation, raising the prospect of further escalation of the crisis rocking the Arab world's most populous state.
In a speech on Thursday, Morsi sought to portray elements of the opposition as "thugs" allied to remnants of the regime of veteran strongman Hosni Mubarak, toppled in a February 2011 uprising.
He defended a decree issued two weeks ago giving him sweeping powers immune from judicial challenge, and vowed to push on with a December 15 referendum on a new constitution drafted by a panel dominated by his Islamist allies.
A grudging offer to sit down with the opposition for talks on Saturday was rebuffed by the National Salvation Front coalition ranged against him.
The Front accused the president of "dividing Egyptians between his 'supporters of legitimacy'... and his opponents, whom he calls 'thugs'."
The opposition sees the decree as a brazen power grab, and the draft constitution as an attempt to quash Egypt's secular underpinnings in favour of Islamic aspirations.
At least four of Morsi's advisers have quit over the crisis, and the Cairo stock market has taken a heavy hit.
Egypt's top Islamic body on Thursday also called on Morsi to suspend the decree.
The United States and European Union have called for dialogue to resolve the crisis.
US President Barack Obama expressed "deep concern" in a call to Morsi on Thursday, the White House said.
UN human rights chief Navi Pillay yesterday criticised the draft constitution and "the way the process has been short-circuited," saying "people are right to be very concerned."