MACTV News: Ambassador Girma Birru presented his credential to President Barack Obama, Posted by Menelik Zeleke, White House Correspondent

Feb 24, 2011

His Excellency Mr. Girma Birru, Special Envoy, Ambassador Extra-ordinary and Plenipotentiary of the Federal Democratic Republic of Ethiopia to the United States of America, presented his credential to President Barack Obama at a ceremony held at the White House on February 23, 2011.

In his remark during the handing in session, Ambassador Girma, reminisced the long standing history of warm friendship and cordial diplomatic relations that continued for over a century between Ethiopia and the US based on mutual respect and the promotion of common interest.

The Ethiopian envoy underscored the shared commitment of both countries as pertains to development, the core values of democracy, the rule of law and the fundamental respect for human rights.

He referenced the deep going cooperation of the two countries in the areas of peace and in safeguarding regional stability and their unwavering joint commitment in the anti- terrorism onslaught.

Ambassador Girma used the occasion to highlight his government's regards for the valuable and all-encompassing support extended by the US. He made a special note of the provision of the generous US assistance for Ethiopia's effort to combat the HIV/AIDS pandemic.

In reference to areas of further partnership the Ethiopian emissary underlined that the two countries could benefit by tapping into the vast and heretofore much unexplored and unharnessed field of trade and investment that he believes could spell a treasure trove for the mutual advantage of both countries.

Ambassador Girm Birru, all the more stressed the need for people to people relations and reiterated his stance that he will tirelessly strive to position himself as a bridge to cement the link by engaging the Ethiopian Diaspora to be able to forge a positive connecting chord with Ethiopia, their country of origin.

President Barack Obama, on his part expressed his country's readiness to further enhance and bolster the already existing cordial relations of the two countries. Upon the occasion of the presentation of the letter of credence by Ambassador Girma, the President also remarked that Ethiopia and the US have an important bilateral partnership, based on shared regional security concerns and the desire to promote a democratic and developed Ethiopia.

Furthermore he underlined that Ethiopia has a rich history and diverse cultural heritage that makes it a truly special country in Africa and in the world, and" we continue to strengthen our relationship". "Our dynamic and mutually beneficial relationship requires deepening our engagement in a balanced fashion", Mr. Obama stressed.

Elucidating US support to Ethiopia in its effort at extricating itself from the bondage of poverty and backwardness, President Barack Obama cited the progress on the Economic Growth and Development Working Group as a testament to his country's desire to sustain Ethiopia's positive economic progress forward.

He added that the fostering of a positive democratic trajectory will sustain the important partnership between the two countries in the long term. He paid a pivotal attention to the prevailing vital security co-operation between Ethiopia and the US and underscored their common security interests in the Horn of Africa.

Mr. Obama assured Ambassador Girma of his preparedness to work closely with him; in what he referred to the advancement of the shared goals and in the furtherance of the two countries' engagement on "the three pillars of our relationship" he underscored.

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-Iran lawmakers urge death for opposition leaders, Posted by Meosha Eaton

As reported by Reuters

* MPs call for death penalty for opposition leaders
* Police say one killed, dozens arrested in protests
* Lawmaker says two people died during rallies
* Life is back to normal in Tehran streets
* Hardliners demand leaders' arrest, stage sit-in
(Adds hardliner protests, paragraphs 6-7, lawmaker says 2 dead)

By Parisa Hafezi

TEHRAN, Feb 15 (Reuters) - Iranian lawmakers called for the death penalty on Tuesday for opposition leaders they accused of fomenting unrest after a rally in which a least one person was killed and dozens were wounded, state media said.
Clashes broke out on Monday between security forces and protesters when thousands rallied in sympathy for popular uprisings in Egypt and Tunisia on Monday. They revived mass protests that shook Iran after a presidential vote in 2009.

"(Opposition leaders) Mehdi Karroubi and Mirhossein Mousavi are corrupts on earth and should be tried," the official IRNA news agency quoted members of parliament as saying in a statement. The statement was signed by 222 lawmakers out of 290.
Being "corrupt on earth" is a charge which has been leveled at political dissidents in the past. It is a capital offence.

A spokesman for the Islamic republic's judiciary, Gholamhossein Mohseni-Ejei, said: "Those who created public disorder on Monday will be confronted firmly and immediately."

One member of parliament, Kazem Jalali, was quoted by the student news agency ISNA as saying two people died in Monday's events, one of whom was shot dead.
A group of hardline Iranians, including students and clerics, planned to stage a sit-in outside a Tehran judiciary complex on Tuesday, demanding "immediate trial of Karroubi and Mousavi", the semi-official Fars news agency reported.
It also said hardline students protested against Mousavi and Karroubi in various universities in Tehran.


"WESTERN PLOT"
Iranian authorities have repeatedly accused opposition leaders of being part of a Western plot to overthrow the Islamic system. The claim has been denied by Mousavi and Karroubi, who were prevented from attending Monday's Tehran demonstration.
Parliament speaker Ali Larijani also accused the United States and its allies of providing support to the opposition following uprisings in Tunisia and Egypt, both Western allies.

"The main aim of Americans was to simulate the recent events in the Middle East in Iran to divert attention from those countries," Larijani said, state radio reported.
Protests against Iran's clerical establishment seemed to be over on Tuesday and life in the main cities was back to normal.

But its leaders are wary of a repeat of the kind of protests which shook Iran after a presidential election in 2009. That was the biggest unrest since the 1979 Islamic revolution.

At least 20 pro-reform activists were arrested before Monday's marches, opposition websites said.

State television called protesters "monarchists, thugs and seditionists". Police said dozens of protesters were arrested and at least nine policemen were wounded by what they called "hypocrites" acting for the United States, Britain and Israel.

Iran's top authority Supreme Leader Ayatollah Ali Khamenei has called the uprisings in Egypt and Tunisia against secular, Western-allied rulers an "Islamic awakening", akin to the revolution that overthrew the U.S.-backed shah in Iran.
But the opposition says they mirror their own protests after the re-election in June 2009 of President Mahmoud Ahmadinejad.

(Additional reporting by Ramin Mostafavi and Reza Derakhshi; Editing by Alastair Macdonald)

-Berlusconi to face trial over prostitution scandal, Posted by Meosha Eaton

As reported by Reuters:



* Judge orders Berlusconi to stand trial over sex case

* Trial date set for April 6

(Adds background, details, quotes)
By Manuela D'Alessandro

MILAN, Feb 15 (Reuters) - An Italian judge ordered Prime Minister Silvio Berlusconi to stand trial on Tuesday on charges that include paying an underage girl for sex.
Following weeks of scandal that have shaken his struggling centre-right government, trial has now been set to start in a criminal court in Milan on April 6, the Milan chief judge's office said in a statement.

Berlusconi is not obliged to appear in person before the panel of three judges on that day, nor is there any legal obstacle to him continuing to hold office throughout any trial proceedings, which could take years before any conviction.
Throughout a number of other legal cases, the 74-year-old premier has retained the loyalty of lieutenants in his own party, which he set up after making his fortune in business.

"We did not expect anything different," Piero Longo, one of Berlusconi's lawyers and a member of parliament for the ruling PDL party, told reporters after the decision was announced.

Nonetheless, the decision is a blow to Berlusconi, who has faced mounting public criticism as he tries to shore up a precarious majority in parliament.


RUBY AFFAIR
Italian media have been dominated for weeks by the alleged prostitution affair, which turns on the case of a teenaged Moroccan-born nightclub dancer named Karima el Mahroug, whose stage name Ruby has become a household word in Italy.
Prosecutors say they have ample evidence that Berlusconi paid el Mahroug for sex when she was 17 years old -- an offence in Italy -- and also telephoned a police station to pressure officers to release her after she was held on theft allegations.
She denies having sex with Berlusconi but admits receiving at least 7,000 euros ($9,500) after attending a party at the premier's luxurious private residence at Arcore near Milan. The legal age for selling sexual services is 18.

Berlusconi, a billionaire businessman turned politician, has denied doing anything illegal in the case and says he has been targeted by politically motivated judges backed by the left who are determined to bring him down.

He says he has never paid for sex and says that when he telephoned the Milan police station it was because he believed el Mahroug to be the granddaughter of Egyptian President Hosni Mubarak and he wanted to avoid a diplomatic incident.
On Tuesday, he pulled out of a news conference he had been due to attend on the wave of refugees who have arrived in Sicily from Tunisia.


SPECIAL TRIBUNAL
Italy's constitutional court last month removed the automatic immunity from trial Berlusconi had previously enjoyed. The prime minister is also due to face trial in three unrelated embezzlement and fraud trials in the coming weeks.
But Tuesday's decision may be only one step in a lengthy legal battle.

Berlusconi's lawyers have argued that the case should be heard by a special tribunal for ministers and that they should have 30 days to appeal the decision by the judge to skip a preliminary hearing and go straight to trial.

The prime minister's legal problems have added a complicating factor to a political situation that was already tangled by a split in the PDL party last year, which left Berlusconi barely clinging to power.

The government survived a no-confidence motion in parliament in December by a small margin. Since then, however, Berlusconi has gradually built up support by winning over deputies from smaller centrist parties and splinter formations.

There has been widespread speculation that Italy will have to hold early elections, possibly in the coming months although Berlusconi said on Monday he was confident he had enough support in parliament to see out his full term to 2013.

On Sunday, hundreds of thousands of women across Italy demonstrated against the prime minister and the opposition has called on Berlusconi to resign and either give way to another centre-right leader or go for early elections.

Rocco Buttiglione, a member of the centrist UDC party, said the political situation had become "intolerable".

"Berlusconi has become a symbol of national division," he said.

(Writing by James Mackenzie; Editing by Alastair Macdonald)

Man tries to set himself on fire at Algeria protest, Posted by Meosha Eaton

As reported by Reuters:


* Protester wrestled to ground before he could ignite fuel
* Incident was at small protest over unemployment
* Algeria wary unrest could spread from Egypt, Tunisia


By Christian Lowe
ALGIERS, Feb 6 (Reuters) - An Algerian man doused himself with fuel and tried to set himself on fire on Sunday during a small protest outside a government ministry in the capital to demand more jobs.

Algerian opposition groups, inspired by uprisings in Egypt and Tunisia, say they will force the government to quit, but analysts say a revolt is unlikely because officials can use revenue from energy exports to soothe most grievances.

During the protest outside the employment ministry building involving about 30 people, a man arrived, poured fuel over himself from a jerry can and then tried to ignite it with a cigarette lighter.

A journalist standing nearby wrestled the man to the floor before he could set fire to himself, said a Reuters cameraman who was at the protest. The man was later escorted inside the ministry building by police.

A wave of protests in neighbouring Tunisia which forced out President Zine al-Abidine Ben Ali last month was started by a young unemployed man setting himself on fire in an act of protest at his treatment by the authorities.
Since then, there has been a series of self-immolations around the Arab world, including several in Algeria.


JOBLESS RATE
According to official figures, Algeria's unemployment rate is around 10 percent, while joblessness among the young is more than twice that figure.

"What are those people at the top doing? They do not have the right to be there," said Abdu Bendjoudi, one of the organisers of Sunday's protest.
"If the government does not make an effort in this sense (to reduce unemployment), catastrophe approaches. What happened in Egypt and Tunisia risks coming here today."

Energy exporter Algeria has about $150 billion in foreign currency reserves, almost no external debt, and forecasts economic growth of 4 percent in 2011. But the economy, dominated by the oil and gas sector, produces too few jobs.

President Abdelaziz Bouteflika, seeking to prevent opposition calls for protests from building momentum, promised last week more democratic freedoms and ordered the government to adopt new job-creation measures.

A coalition of civil society groups, some trade unionists and small political parties said they did not trust Bouteflika's promises, and would be going ahead with a planned protest rally in the capital on Feb. 12.

(Additional reporting by Abdelaziz Boumzar; Writing by Christian Lowe; Editing by David Stamp)

Stocks fall, crude surges on Egypt turmoil, Posted by Meosha Eaton

As reported by Reuters:

* MSCI world equity index dips from recent 29-month high
* Oil rallies on escalating Egypt violence
* European stocks, euro fall; Bunds steady


By Natsuko Waki
LONDON, Feb 3 (Reuters) - World stocks fell and oil surged above $103 a barrel on Thursday as unrest in Egypt escalated, adding to concerns about inflationary pressures that could threaten the global economic recovery.

Gunmen fired on anti-government protesters in Cairo, where fighting killed six and wounded over 800 on Thursday in a fresh spike in violence over an unprecedented challenge to President Hosni Mubarak's 30-year-old rule.

Global food prices measured by the U.N. Food and Agriculture Organisation hit their highest level since records began in 1990. Rising food costs have been a key driver of the turmoil in Egypt and Tunisia that is threatening to spill over to other countries.
This is also encouraging investors to cut back on risky assets, especially after world stocks hit 29-month highs on Wednesday.

"Everybody is watching Egypt, we are looking at Yemen too," said Christophe Barret, oil analyst at Credit Agricole.

"Mainly, it's fear of contagion to other countries... I think prices above $100 for Brent are just not sustainable, it's something that has a very strong impact on the economy, a strong impact on demand."

Investors are also eyeing European Central Bank President Jean-Claude Trichet's news conference later in the day for further clues on how the bank plans to combat rising inflation. The MSCI world equity index fell around 0.15 percent, with many Asian players away for the Lunar New Year holidays. The Thomson Reuters global stock index was down around the same amount.

The FTSEurofirst 300 index fell 0.4 percent while emerging stocks added 0.1 percent.
U.S. stock futures were down around 0.1 percent, pointing to a slightly weaker open on Wall Street later.


OIL AND INFLATION
U.S. crude oil rose 0.7 percent to $91.54 a barrel while ICE Brent crude for March rose to as high as $103.37 a barrel, its highest since Sept. 26, 2008.

Fears have grown that unrest in Egypt and Tunisia could spread to other countries in the Middle East and threaten the region's oil exports.

And higher energy, food and other commodity prices are fanning concerns that the resulting inflationary impact -- not just in fast-growing emerging markets but also in developed economies -- would squeeze corporate profits and hit the global economic recovery.

Euro zone inflation rose to 2.4 percent in January, moving further above the ECB's target. A survey showed the euro zone's dominant service sector expanded much faster than initially thought in January, albeit with some divergences among member states.
JP Morgan expects a sustained 10 percent rise in oil prices would cut global gross domestic product by 0.25 percentage points.

Bund futures were steady ahead of Trichet's news conference.
Investors are looking for hints on when euro zone interest rates might rise, given Trichet's recent warnings on the need to tackle inflationary pressures.
The dollar rose 0.3 percent against a basket of major currencies while the euro lost 0.4 percent to $1.3751, having hit a 12-week high of $1.3862 on Wednesday.

(Editing by John Stonestreet)

Middle East rulers make concessions to unrest, Posted by Meosha Eaton

As reported by Reuters:


Feb 2 (Reuters) - Protests that are spreading around the Arab world began in Tunisia after a young man set himself on fire in mid-December because police seized his grocery cart.

The death of Mohamed Bouazizi, who became a martyr to Tunisian crowds who drove authoritarian President Zine al-Abidine Ben Ali from power, set off other protests that have triggered a political earthquake in the Middle East.

Here are details of political changes in the region:


* TUNISIA -- Having made empty promises of reforms and elections, Tunisia's Ben Ali fled to Saudi Arabia after 23 years in charge of a police state. Days of clashes -- during which the United Nations said 147 people were killed -- led to his ouster on Jan. 14. Mohamed Ghannouchi, prime minister under Ben Ali since 1999, now heads an interim government.

-- Ghannouchi appointed opposition figures to a national unity coalition but after more violent protests, he purged the new cabinet of most of the remnants of Ben Ali's regime.

-- Major street protests have dried up in recent days, after the reshuffle appeased public opinion.

-- Tunisia's interior ministry also replaced 34 senior security officials, to overhaul the network of police, security forces and spies built up by Ben Ali over two decades.

* EGYPT -- Protesters demonstrating for and against Egyptian President Hosni Mubarak clashed in Cairo on Wednesday in the central Tahrir Square, scene of mass protests that have shaken Mubarak's rule.

-- A million people throughout Egypt called on Tuesday for Mubarak to go. In a television broadcast, he announced he would not stand again when his term ends in September and would work to change clauses in the constitution that make it almost impossible to mount a realistic challenge to the presidential candidate nominated by his ruling party.

-- The parliament speaker also said on Wednesday he wanted the promised constitutional reforms completed in less than 10 weeks. But opposition leaders said Mubarak must go immediately.

-- Mubarak has alredy appointed a new government and a vice-president -- a post not occupied since he was catapulted to the presidency after the 1981 assassination of Anwar Sadat.


* YEMEN -- Yemeni President Ali Abdullah Saleh, a key U.S. ally against al Qaeda, said on Wednesday he would not seek to extend his presidency in a move that would end his three-decade rule when his current term expires in 2013.

-- Eyeing the protests sweeping the region, Saleh also vowed not to pass on the reins of government to his son. He appealed to the opposition to call off new protests.

-- Saleh promised direct election of provincial governors and also agreed to re-open voter registration for elections due in April after opposition complaints that around 1.5 million Yemenis were unable to sign up. -- Last week, anti-government protests drew around 16,000 people. Some called for Saleh to leave. A new opposition rally will go ahead on Thursday in the capital Sanaa.


* JORDAN -- King Abdullah of Jordan, a close U.S. ally, replaced his prime minister on Tuesday after protests, but the Islamist opposition dismissed the move as insufficient.

-- The King asked Marouf Bakhit, a conservative former prime minister to head a new government after accepting the resignation of Samir Rifai, whose dismissal was demanded in a series of protests across the country. He also asked the new government for practical, speedy and tangible steps to launch a path of political reform.

-- Islamists, leftists and trade unionists had demonstrated in Amman on Jan. 28 to demand wider freedoms. A crowd of at least 3,000 chanted: "We want change."

-- Banners showed a wider range of grievances than the high food prices that fuelled earlier protests two weeks ago, and included demands for free elections and the dismissal of Rifai's government and a representative parliament.

-- Jordan has already announced a $225 million package of cuts in the prices of some types of fuel and staples including sugar and rice. Rifai had also announced wage increases to civil servants and the military in an attempt to restore calm.

* ALGERIA -- Several Algerian towns including the capital experienced days of rioting in January, provoked by a jump in food prices. Two people died and hundreds were injured during the clashes, officials said. At least four men set themselves on fire in provincial towns.

-- To calm the situation, Algeria cut the cost of some basic foodstuffs and to increase by 18 percent the amount of soft wheat it supplies to the local market each month.

Mubarak pledge to step down dismissed as too slow, Posted by Meosha Eaton

* Mubarak says will step down in September
* After million march against him, chants of "Leave now!"
* Obama says transition "must begin now"


By Edmund Blair and Samia Nakhoul
CAIRO, Feb 2 (Reuters) - Egyptian President Hosni Mubarak said on Tuesday he would surrender power in September, angering protesters who want an immediate end to his 30-year-rule.

The United States called for the transition of power to begin straight away, stopping short of endorsing Mubarak's plan to stay in office for another six months.
"What is clear and what I indicated tonight to President Mubarak is my belief that an orderly transition must be meaningful, it must be peaceful and it must begin now," President Barack Obama said after speaking to him by phone.

In the streets of Cairo, protesters whose numbers swelled above 1 million across Egypt on Tuesday, many renewed their calls for the 82-year-old leader to quit.
"We will not leave! He will leave!" some chanted.

A leading reformist figure, retired diplomat Mohammed ElBaradei, was quoted by CNN calling Mubarak's move a "trick".

Mubarak appealed over the heads of the urban demonstrators to the wider nation of 80 million. The "noble youths" who had begun protests, he said, had been exploited by men of violence.

Much may depend on the army, once Mubarak's power base, which appears to be trying to ensure a transition of power that would maintain the influence of the armed forces.

Under evident pressure from Obama and the army as much as from the crowds on the streets, Mubarak delivered a composed 10-minute televised statement.
To those demanding he flee the country in the manner of his ousted Tunisian counterpart last month, Mubarak said: "This is my country ... and I will die on its soil."
But he would not give up power just yet: "I say in all honesty and regardless of the current situation that I did not intend to nominate myself for a new presidential term," he said.

"I will work in the remaining months of my term to take the steps to ensure a peaceful transfer of power."


SPEECH "INFLAMES OUR ANGER
Many of those on the streets in defiance of a curfew doubted his commitment to making the kind of sweeping democratic constitutional changes which he has resisted since inheriting the mantle of the ruling military establishment in 1981.

At Cairo's Tahrir, or Liberation, Square, focus of protests for a week, young professionals in their 20s were unimpressed.

"The speech is useless and only inflames our anger," said Shadi Morkos. "We will continue to protest."

In Alexandria, the second city, troops in tanks fired shots in the air to keep order after skirmishes between anti-government and pro-Mubarak groups. But there was no sign that the army was trying to halt anti-government protests.
It has said it will protect marchers and called their demands "legitimate".
But some analysts said tensions could rise even within the army if Mubarak were to hang on too long, and if senior officers were seen to be protecting a leader who had lost legitimacy.

"The longer this goes on, the more people will associate the military top brass with Mubarak. That is very dangerous," said Faysal Itani, deputy head of Middle East and North Africa Forecasting at Exclusive Analysis.

"It will put enormous strain on the security services."
A British-based cleric from the Muslim Brotherhood, the hitherto banned Islamist party which is the most organised Egyptian opposition group, also said there could be conflict.

"It will add fuel to the fire. His speech will bring the danger of conflict in the country. We were expecting him to be stubborn, but not to that extent," Kamel el-Helbawy said.
Tuesday's demonstration was an emphatic rejection of Mubarak's appointment of a new vice president, Omar Suleiman, and an offer to open a dialogue with the opposition.
Many protesters spoke of a new push on Friday, the Egyptian weekend, to rally at Cairo's presidential palace to dislodge Mubarak: "This won't fly any more," said 35-year-old doctor Ahmed Khalifa. "If Egyptians stay on the streets till Friday, probably Mubarak's next offer will be to step down right away."


REGIONAL INSTABILITY
His departure would reconfigure the politics of the Middle East, with implications from Israel to oil giant Saudi Arabia.

King Abdullah of Jordan replaced his prime minister on Tuesday after protests. Yemen and Sudan have also seen unrest.

Just four weeks since the death of Mohammed Bouazizi, the Tunisian who set himself on fire to protest at oppression and corruption, the wave of anger he set in motion has gathered strength across the region.

The unrest has sent oil prices higher on fears of trouble in Saudi Arabia and on Egypt's Suez Canal. That in turn has raised worries about a further rise in inflation, increasing the potential for social unrest far beyond the Middle East.

(Additional reporting by Andrew Hammond, Patrick Werr, Dina Zayed, Marwa Awad, Shaimaa Fayed, Alexander Dziadosz, Yasmine Saleh, and Alison Williams in Cairo and William MacLean, Peter Apps and Angus MacSwan in London, Matt Spetalnick in Washington, writing by Alastair Macdonald, editing by Myra MacDonald)

Mubarak steps down, Posted by Meosha Eaton

* Mubarak says will step down in September
* After million march against him, chants of "Leave now!"
* Obama envoy urged Mubarak to prepare transition
* Opposition says will talk only after he leaves country
(Edits throughout, adding comment)

By Edmund Blair and Samia Nakhoul
CAIRO, Feb 1 (Reuters) - President Hosni Mubarak said on Tuesday he would step down in September, offering a mixture of concessions and defiance to Egyptians who marched a million strong to demand that his 30-year-rule end immediately.
Exhilarated by having wrought once unimagineable change on the most populous Arab state in just a week of protests, many on the streets renewed their calls for the 82-year-old leader to quit now and make way for a transitional unity government.

"We will not leave! He will leave!" some chanted in Cairo.
A leading reformist figure, retired diplomat Mohammed ElBaradei, was quoted by CNN calling Mubarak's move a "trick".

Many analysts were also incredulous that he might hang on.
Much may depend on the army, once Mubarak's power base, which appears to be trying to ensure a transition of power that would maintain the influence of the secular-minded armed forces.

U.S. President Barack Obama, who spent half an hour on the phone to Mubarak on Tuesday, is also working for stability in a country that is a linchpin of his global strategy and where the biggest opposition movement is the Islamist Muslim Brotherhood.
Under evident pressure from Obama and the army as much as from the crowds on the streets, Mubarak delivered a composed 10-minute televised statement. He appealed over the heads of the young, urban demonstrators to the wider nation of 80 million fearful of political uncertainty. The "noble youths" who had begun protests, he said, had been exploited by men of violence.

To those demanding he flee the country in the manner of his ousted Tunisian counterpart last month, Mubarak said: "This is my country ... and I will die on its soil."
But he would not give up power just yet: "I say in all honesty and regardless of the current situation that I did not intend to nominate myself for a new presidential term," he said.

"I will work in the remaining months of my term to take the steps to ensure a peaceful transfer of power."


PROTESTERS DEFIANT
Many of those on the streets in defiance of a curfew doubted his commitment to making the kind of sweeping democratic constitutional changes which he has resisted since inheriting the mantle of the ruling military establishment in 1981.
At Cairo's Tahrir, or Liberation, Square, focus of protests for a week and of unprecedented crowds of hundreds of thousands on Tuesday, young professionals in their 20s were unimpressed.

"The speech is useless and only inflames our anger," said Shadi Morkos. "If Mubarak was not going to run for a sixth term, why did he not say it before? Why does he leave the people hanging ... We will continue to protest."

In Alexandria, the second city, troops in tanks fired shots in the air to keep order after skirmishes between anti-government and pro-Mubarak groups. But there was no sign that the army was trying to halt anti-government protests.

It has said it will protect marchers and called their demands "legitimate".
Many protesters spoke of a new push on Friday, the Egyptian weekend, to rally at Cairo's presidential palace to dislodge Mubarak: "This won't fly any more," said 35-year-old doctor Ahmed Khalifa. "If Egyptians stay on the streets till Friday, probably Mubarak's next offer will be to step down right away."

Washington, Israel and the Western allies are keen to avoid a takeover by the mass Islamist movement the Muslim Brotherhood.

After Mubarak's speech, however, former U.S. deputy national security adviser Elliot Abrams, expressed scepticism that the veteran leader could bring off a smooth, slow handover:
"This just really won't work," he told CNN. "I can't see anybody in Tahrir Square accepting that he will be president for eight more months and that he would, after 30 years, be trusted to be the man in charge of the democratic transition.
"Why would anyone believe that?"


REGIONAL INSTABILITY
His departure would reconfigure the politics of the Middle East, with implications from Israel to oil giant Saudi Arabia.

King Abdullah of Jordan replaced his prime minister on Tuesday after protests. Yemen and Sudan have also seen unrest.

Just four weeks to the day since the death of Mohammed Bouazizi, the Tunisian who set himself on fire to protest at oppression and corruption, the wave of anger he set in motion has gathered strength across the region. Some liken it to the fall of communism in eastern Europe in 1989.

Just a week ago, few Arabs could conceive of the Egyptians, better known for good humour and forebearance than for political energy, rising up to unseat a man who has ruled unchallenged for 30 years. Last week, Mubarak seemed certain of a sixth term, or of handing over to his son.

Unrest is stirring in other Arab countries like Jordan and Yemen, sending oil prices higher on fears of trouble in Saudi Arabia and on Egypt's Suez Canal. Mubarak's vision of a smooth handover of power helped calm such worries on markets.

Continued turmoil in Tunisia, however, is a reminder that political change is unlikely to be smooth anywhere.


ISLAMISTS
Effigies of Mubarak were hung from traffic lights. The crowds included men, women and children from all walks of life, showing the breadth of opposition to Mubarak.
The demonstration was an emphatic rejection of Mubarak's appointment of a new vice president, Omar Suleiman, a cabinet reshuffle and an offer to open a dialogue with the opposition.

The United States and other Western allies were caught out by the uprising. Washington has called for reforms and free elections but is also concerned that Islamists could gain a slice of power should Mubarak be forced out.

The prospect of a hostile neighbour on Israel's western border also worries Israeli Prime Minister Benjamin Netanyahu.

Kamran Bokhari at political risk consultancy Stratfor said even Mubarak's concession to step aside in due course was "huge": "It will send shockwaves across the region. It's not that I would necessarily say there's going to be a domino effect, but I think we will see an increase in protest and governments will certainly be worried.It is a tectonic shift.
"I don't think it will be enough for the protesters ... Then the most likely scenario would be the military would have to force Mubarak out ... Then you would have elections. It's quite possible the Muslim Brotherhood would perform well, but the military will also want to have a role."

At least 140 people have died since demonstrations began last Tuesday. Al Arabiya said the interior minister sacked last week was going to be prosecuted by the military.
(Additional reporting by Andrew Hammond, Patrick Werr, Dina Zayed, Marwa Awad, Shaimaa Fayed, Alexander Dziadosz, Yasmine Saleh, and Alison Williams in Cairo and William MacLean, Peter Apps and Angus MacSwan in London, Matt Spetalnick in Washington, writing by Alastair Macdonald, editing by Ralph Boulton)