Egypt president scraps decree that sparked protests (ish)

By Edmund Blair and Yasmine Saleh

CAIRO | Sat Dec 8, 2012 9:32pm EST

(Reuters) - Egyptian President Mohamed Mursi has cancelled a decree that gave him sweeping powers and sparked deadly violence, but did not delay this month's referendum on a new constitution as his opponents had demanded.

The announcement that Mursi had scrapped his November 22 decree followed hours of talks on Saturday at his presidential palace, billed as a "national dialogue" but which was boycotted by his main opponents and had little credibility among protesters.

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His opponents have demanded Mursi scrap the vote on December 15 on a constitution that was fast-tracked through an assembly led by Mursi's Muslim Brotherhood and other Islamists. Liberals and others had walked out, saying their voices were not being heard.

Islamists have insisted the referendum should go ahead on time, saying it is needed to complete a democratic transition still incomplete after Hosni Mubarak's overthrow 22 months ago.

The military, which had run the nation during a turbulent interim period after Mubarak fell, stepped into the crisis on Saturday to tell feuding factions that dialogue was essential to avoid "catastrophe." But a military source said that was not a prelude to the army retaking control of Egypt or the streets.

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(Additional reporting by Tamim Elyan; Editing by Peter Cooney)