Mired in political and economic dilemmas, the new government taking the helm following a year of unfulfilled pledges is faced with highly sensitive problems: fuel subsidies and a mammoth state budget deficit top the long list of issues facing Prime Minister Hazem el-Beblawi.
The economic situation will be the toughest challenge facing the new government: the state budget exceeds LE200 billion ($28.5 billion), while a high unemployment rate and inflationary pressures are taking their toll on the cash-strapped country.
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