Egypt’s new military regime could cancel national elections
amid rising unrest, a report said.

The Economist Intelligence Unit said the military regime that ousted
President Hosni Mubarak in February could suspend elections for
parliament and the presidency. The Economist argued that growing ethnic and
labor unrest could lead the Supreme Council of the Armed Forces to continue
martial law indefinitely.

“The increasingly heated disputes about such constitutional issues and the repeated breakdowns in security could lead the army council to conclude that it has no option but to call the whole process off and declare military rule for a prolonged period,” the Economist said.

In a report on Oct. 13, the Economist pointed to severe tension,
particularly between Muslims and the Coptic minority that resulted in scores of deaths. The report said the confrontation between security forces and Copts on Oct. 10, in which 24 people were killed, reflected sharp divisions within the country.

“One of the main causes of the discontent is the failure of the ruling military council to come up with an acceptable plan for the transition to civilian rule,” the report said.

The unrest, which included attacks on the embassies of Israel and
Saudi Arabia, has bolstered the resolve of the military regime to maintain
power. The military council, led by Defense Minister Hussein Tantawi, has
set parliamentary elections to begin on Nov. 28 but delayed presidential
elections.

“The SCAF’s hold on power is indeed starting to look like a permanent
fixture,” the report said, “but this has come about mainly because of its
repeated miscalculations and improvised decision-making, rather than as a
result of any grand design.”

The report said the military regime would maintain its grip until at
least an elected president takes office. The Economist said this could mean
military rule through 2013.

“There is no suggestion that this is an outcome that the SCAF has ever
sought, but it could yet transpire largely because of its own blunders,” the
report said.