Editorial: WSJ: - Free Market - Egypt

Cairo Revolution Finds New Target: Free Market - the Wall Street Journal. 

by Matt Bradley 

Photography by Kim Badawi  

CAIRO—The millions of Egyptians who demanded President Hosni Mubarak's downfall last month were drawn not only by opposition to his authoritarian rule; many were also furious about his free-market reforms. 

During a strike at Ceramica Cleopatra, military officials told some workers, above, 'We are on your side.' 

Ceramica Cleopatra's general manager Ezzat Essawy recalls that Gen. Mahdi told him that day: "You have to agree with 100% of the employee demands." The Egyptian military didn't respond to requests to comment. 

Under such pressure, Cleopatra, which employs 20,000 Egyptians, agreed to a 35% rise in payroll costs, effective from April—just as the Egyptian construction industry, its main market, ground to a halt after the revolution shook investor confidence in the property market.