Egyptian Protesters Press Military to Get Out of Politics

Protesters in Egypt continued to push for the removal of the military from politics in what is looking like a repeat of the protests earlier in the year that forced long time Egyptian ruler President Hosni Mubarak to step down from power. The protesters have filled Cairo's Tahrir Square and faced repeated attempts by Egypt's security forces to remove them. Although the violence has already claimed dozens of lives, the protesters have vowed to remain until the military hands power over to a democratically elected government. The current civilian Cabinet offered its resignation on Monday in a bid to end the violence but the protesters see the civilian government as a proxy for the country's all powerful military. Shortly after President Hosni Mubarak was forced from power, many Egyptians saw the military as an ally that had the people's interest at heart. However, the military's reputation has suffered since the overthrow. The protesters complain that the military has simply been looking after its own interests along. The protesters concerns have been underscored by the military's attempts to gain special powers that would give it veto power over the next constitution and a military budget that wouldn't be subject to government oversight. The unrest has weighed on the Egyptian stock market, with the EGX30 falling more than 3 percent just after the stock market opened. If the protests continue and the death toll rises, the Egyptian stock market will continue to fall. Investors who hoped that the Arab Spring would benefit the region's economies could be let down if the situation in Egypt is a sign of things to come. The Egyptian military has been involved in business and politics for quite some time and doesn't seem eager to give up that power. If the protesters are unsuccessful in their attempts to get the military out of politics, it could mean that nothing has changed in Egypt except for the face of power. On the other hand, much of the world's attention is currently focused on Egypt and it's unlikely that the generals will attempt a bloody crackdown like the being enforced by Syria's security services. The generals have already seen that throughout the Middle East the will of the people must now be respected. If the protesters refuse to back down, the military might finally agree to much needed reforms. If these were to occur, an ETF like the SPDR S&P Emerging Middle East & Africa GAF could climb higher. International investors value free markets and open open governments. If Egypt moves further in this direction, others in the Middle East could follow and the countries' economies could grow.