Cairo:
More than three months after a popular revolt overthrew a regime reviled for its corruption and brutality, Egypt is facing mounting religious tensions and economic stagnation.
The unity which brought together millions, Muslim and Christian alike, out on the streets in anti-regime protests has been followed by sectarian attacks which threaten to unravel Egypt's precarious religious coexistence.
In the worst violence, 15 people died in clashes this month when Muslims attacked two churches because they said Christians were detaining a Muslim convert.
The attacks have raised fears about the stability of the country, where police are only just beginning to restore their standing which took a beating during the revolt when they were on the frontline of a crackdown.
The ruling military, which has pledged to come down on disorder with an "iron fist," and the police have been accused of weak responses to the unrest.
The fate of ousted president Hosni Mubarak and his family remains a sensitive issue. Mubarak is detained in a hospital room on suspicion of corruption and involvement in the deaths of protesters.
His two sons are in a Cairo prison, while his wife Suzanne is out on bail.
A report by an Egyptian newspaper that the government was considering an amnesty for Mubarak in return for an apology and the return of assets angered many Egyptians.
Hundreds of them gathered on Friday in Tahrir Square, the epicentre of the revolt, to protest against any reconciliation with the former leader, who they say must face trial.
The report prompted a denial from the military, which summoned the editor of the newspaper and two of its reporters and made them sign a pledge to consult the military before publishing related news.
"Egypt today is like a patient who has undergone surgery to remove a malignant tumour. The operation was successful but the patient must undergo a recovery period," wrote Osama Ghazali Harb, the Democratic Front Party head, in a weekly newspaper.
Pro-democracy activists, however, frustrated at the rate of change, are saying the country needs a second revolution.
The announcement of the release of the former first lady Suzanne Mubarak on bail after she delivered four million dollars of assets to the state has added to public anger.
"It's only small change, they all had the time in the world to transfer their assets abroad," said a Cairo hairdresser. He echoed a widespread view that the military wants to protect the ex-president, who had served as air force chief.
The military has said it sides with the revolution, but accusations of torture and arbitrary arrests have dulled its lustre since the uprising, during which it won high praise for not backing Mubarak against the protesters.
The military has appealed against unrest that could further hurt the tourist-dependent economy. The government estimates it needs between 10 and 12 billion dollars in international funding in the coming year.
The tourism sector has been hard hit, with an estimated 2.27 billion dollars in losses since the revolt broke out in January.
The political transition has also been rough. A parliamentary election is scheduled in September, despite the objections of secular groups which want more time to organise against the powerful Muslim Brotherhood movement.
But on the diplomatic front at least, Egypt has scored a major success by having finally helped rival Palestinian groups Hamas and Fatah reach an elusive unity deal.