Court ruling throws Egypt's democratic transition into disarray

Two days before the country is set to elect a new president, Egypt's Supreme Constitutional Court has ruled that the Muslim Brotherhood-dominated parliament must be dissolved and that former regime figures must be allowed to hold political office, effectively approving the candidacy of presidential hopeful and former prime minister Ahmed Shafik.

The Islamist group said Egypt could see "dangerous" days ahead if power is returned to those linked to the previous regime.

The group's candidate, Mohammed Mursi, faces ex-PM Ahmed Shafiq in a runoff presidential election this weekend.

The decision by the Supreme Court on Thursday plunged Egypt into turmoil.

The court said last year's parliamentary vote - the first free and fair poll in decades - was unconstitutional, and called for fresh elections.

The decision effectively puts legislative power into the hands of the ruling Supreme Council of Armed Forces (Scaf), who were tasked with overseeing Egypt's transition after the toppling of President Hosni Mubarak in February 2011.

Activists, who fear Scaf is trying to increase its power, have denounced Thursday's rulings as a "coup" designed to undermine the revolution, carried out by judges appointed under former President Mubarak.

In a statement, the Muslim Brotherhood - which won 46% of seats in parliament - said the decisions indicated Egypt was heading into "very difficult days that might be more dangerous than the last days of Mubarak's rule".

"All the democratic gains of the revolution could be wiped out and overturned with the handing of power to one of the symbols of the previous era," it said.

Mursi said he was dissatisfied but accepted the court's rulings.

"I respect the decision of the Supreme Constitutional Court in that I respect the institutions of the state and the principle of separation of powers," he told Egyptian TV.

But in a later speech he appealed to voters, with a warning that the country was at a turning point.

"A minority are trying to corrupt the nation and take us back. We will go to the ballot box to say no to those failures, those criminals."

Other political figures hit out at the ruling, warning that the decision would leave the incoming president without a parliament or a constitution.

Islamist Abdul Moneim Aboul Fotouh, who took part in the first round of the presidential vote in May, said that dissolving parliament amounted to "a total coup, anyone who imagines that the millions of youths will let this pass is dreaming".

The Salafist Al-Nour party, which has the second biggest representation in parliament, said the ruling showed "a complete disregard for the free will of voters".

Hundreds of protesters gathered in Cairo's Tahrir Square after the announcement to express their anger.

However, correspondents said the real measure of anger will be tested after prayers on Friday, when demonstrations are usually held.

US Secretary of State Hillary Clinton told reporters "there can be no going back on the democratic transition".