Morsi had offered few concessions in a speech late on Thursday, refusing to retract a November 22 decree in which he assumed sweeping powers or cancel a referendum next week on a constitution newly drafted by an Islamist-dominated assembly. Instead, he called for a dialogue at his office on Saturday to chart a way forward for Egypt after the referendum, an idea that liberal, leftist and other opposition leaders rebuffed.
They have demanded that Morsi rescind the decree in which he temporarily shielded his decisions from judicial review and that he postpone the December 15 referendum before any talks begin. A leader of the main opposition coalition said it would not join Morsi's dialogue: "The National Salvation Front is not taking part in the dialogue," said Ahmed Said, a leader of the coalition, who also heads the liberal Free Egyptians Party.
The Front's coordinator, Mohamed ElBaradei, a Nobel peace laureate, urged "national forces" to shun what he called an offer based on "arm-twisting and imposition of a fait accompli". Murad Ali, spokesman of the Brotherhood's Freedom and Justice Party (FJP), said opposition reactions were sad: "What exit to this crisis do they have other than dialogue?" he asked.
Morsi's decree giving himself extra powers sparked the worst political crisis since he took office in June and set off renewed unrest that is dimming Egypt's hopes of stability and economic recovery after nearly two years of turmoil following the overthrow of veteran military strongman Hosni Mubarak. It has exposed deeply contrasting visions for Egypt, one held by Islamists, who were suppressed for decades by the army, and another by their rivals, who fear religious conservatives want to squeeze out other voices and restrict social freedoms.
Caught in the middle are many of Egypt's 83 million people who are desperate for an end to political turbulence threatening their precarious livelihoods in an economy under severe strain. "We are so tired, by God," said Mohamed Ali, a labourer. "I did not vote for Morsi nor anyone else. I only care about bringing food to my family, but I haven't had work for a week."
A long political stand-off will make it harder for Morsi's government to tackle the crushing budget deficit and stave off a balance of payments crisis. Austerity measures, especially cuts in costly fuel subsidies, seem inevitable to meet the terms of a $4.8-billion IMF loan that Egypt hopes to clinch this month. Thousands of anti-Morsi protesters marched from Tahrir Square and other Cairo locations. More turned out in Alexandria and in some Nile Delta towns. Most demonstrations were peaceful but in Kafr al-Sheikh, north of the capital, rivals clashed near a Muslim Brotherhood office and there was a report of gunshots. Islamists gathered in their thousands at Cairo's al-Azhar mosque for the funeral of the "martyrs" killed in the clashes. "With our blood and souls, we sacrifice to Islam," they chanted.