Still, the worst fears of Egyptian liberals and some American observers seemed to have come to pass: an Islamist now had practically absolute legislative power in the most populous Arab nation. There was a chorus of “told you so”s when an American-made anti-Islam video on YouTube led to an angry mob bursting into the grounds of the U.S. embassy in Cairo—and Morsi took two days to condemn the attack. His first few foreign trips, to China and Iran, were quickly interpreted as an effort to pull Egypt out of the American orbit.
But Morsi has shown restraint. He has so far declined to adopt the harshest interpretations of Shari‘a law, has not imposed dress codes on women and tourists, and whatever his rhetoric has not torn up Egypt’s peace treaty with Israel or flung open the border with Gaza to take pressure off Hamas. His trip to China was not, it turned out, about finding an alternative patron to the U.S., and the Obama Administration was delighted when Morsi gave a speech in Tehran condemning Iran’s ally, Syrian dictator Bashar Assad. (The Iranians struggled to control their embarrassment.) Although Morsi failed in his effort, with Turkey and Qatar, to broker an end to the Assad regime’s slaughter of civilians, the attempt showed that Egypt’s goal in Syria was complementary, not contradictory, to that of other nations. Then came Gaza.
Peace—and Then Protests
Maybe it was inevitable that Morsi’s presidential credentials would be tested in the tiny enclave on the Egyptian border that is home to 1.6 million Palestinians. The Muslim Brotherhood has deep ties to Hamas, the Islamist group that controls Gaza, and Morsi has a history of anti-Israel rhetoric. Although he had preserved the 1979 Israel-Egypt peace treaty, he was never going to look the other way, as Mubarak was wont to do, when Israel battled Hamas.
(MORE: How the Gaza Truce Makes Egypt’s Muslim Brotherhood a Peace Player)
When Israel launched its military campaign against Hamas on Nov. 14, Morsi condemned the attack in robust terms, but didn’t go nearly as far as Turkey’s Prime Minister Recep Tayyip Erdogan, who described Israel as a “terrorist state.” He withdrew Egypt’s ambassador to Israel but kept open channels of communication between Egyptian and Israeli intelligence agencies. To show solidarity with Hamas, he sent his Prime Minister to Gaza during the thick of the bombardment but didn’t unseal the border to allow the militants an escape route—or an open resupply line.
Meanwhile, Morsi spoke six times over several days with President Obama. Events in Gaza moved the two men closer: when they had spoken on the phone in the wake of the attack on the U.S. embassy in October, Obama had been reproachful of Morsi’s inaction. Now their conversations grew more personal: Morsi called Obama at 2:30 a.m. on Nov. 20, apologizing for the lateness of the hour. Obama responded by encouraging Morsi to call whenever he needed, regardless of the time. A few hours later, when Morsi called again, Obama offered his condolences to Morsi, whose sister had died the day before, after a long battle with cancer. Obama told Morsi he knew firsthand the difficulty of dealing with personal setbacks under the public glare. “Obama,” Morsi says, “has been very helpful, very helpful.”
Although the cease-fire negotiations between Israel and Hamas were moderated by Egyptian intelligence officials, Morsi was the whip hand. He spent 75 minutes with Secretary of State Hillary Clinton going over the terms of the proposed cease-fire, reading it out loud in English and offering his opinion on each issue, where he agreed and where he felt edits were needed, a U.S. official reported. His national security adviser took notes as Morsi and Clinton worked out the details. “Our intelligence people were talking to Israel and Hamas during the Mubarak years, but that didn’t help,” says Amr Darrag, who heads the Freedom and Justice Party’s foreign-relations committee. “What was different this time is that you had Morsi, who has genuine legitimacy as an elected leader and real credibility with Hamas.” If there was some grumbling from Islamists at home that Morsi hadn’t helped Hamas enough—by opening the border, for one—it was silenced when Hamas leader Khaled Meshaal declared, “Egypt did not sell out the resistance.”
The applause hadn’t died down when Egypt announced another big win: a preliminary deal with the International Monetary Fund for a $4.8 billion loan, a crucial shot in the arm for an economy that was already slowing when Mubarak was ousted and has only gone downhill since. Analysts said the IMF deal, predicated on Egypt’s commitment to reduce its budget deficit, would reassure private interests that the nation was a safe bet for investors. That, in turn, would help to start paring down unemployment, the root of so much of the discontent displayed in Tahrir Square over the past two years.
MORE: After the Power Play in Egypt: Morsi and the Islamists vs. Everyone Else