BBC News with Marion Marshall.
The Egyptian President Mohammed Mursi has delivered a defiant speech to supporters outside his palace in Cairo, pledging to protect the country's revolution and lead Egypt to freedom and democracy. Opposition groups have accused him of behaving like a dictator after he granted himself sweeping new powers on Thursday. Our correspondent Jon Leyne has been following the events in Cairo.
Through the day across Egypt, demonstrators have poured out onto the streets. Some supporting President Mursi, many others furiously opposed. They say this edict makes him into a new dictator. The president himself came out to speak outside his palace offering this reassurance. "I'd like to see a genuine opposition, a strong opposition, I guarantee that." But there is a wider frustration in Egypt that the new government has done little to change their lives for the better. It's clear there are some turbulent times ahead for Egypt.
European Union leaders have ended their summit in Brussels without an agreement on a new budget deal. Most EU leaders supported an increase in the budget for the years 2014 to 2020, but Germany, Britain and several others wanted cuts. Gavin Hewitt reports from Brussels.
In the end, as many have predicted, Europe's leaders failed to reach agreement on the next seven-year budget, they will try again in the New Year. The differences were too great, particularly, between those countries like Poland which benefits from EU grants and those countries which are the main contributors. The original budget proposal at over a trillion Euros was reduced by 80bn. The President of the European Council, Herman Van Rompuy remained confident of a deal in the New Year.