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Cairo • Islamist Mohammed Morsi was declared the winner Sunday in Egypt's first free presidential election in history, closing the tumultuous first phase of a democratic transition and opening a new struggle with the still-dominant military rulers who recently stripped the presidency of most of its powers.

In Tahrir Square, the birthplace of the uprising that ousted autocratic President Hosni Mubarak, joyous supporters of Morsi's Muslim Brotherhood wept and kneeled on the ground in prayer when they heard the announcement on live television. They danced, set off fireworks and released doves in the air with Morsi's picture attached in celebrations not seen in the square since Mubarak was forced out on Feb. 11, 2011.

Many are looking now to see whether Morsi will try to take on the military and wrestle back the powers they took from his office just one week ago. Thousands vowed to remain in Tahrir to demand that the ruling generals reverse their decision.

In his first televised speech, the 60-year old U.S.-trained engineer called on Egyptians to unite and tried to reassure minority Christians, who mostly backed Morsi's rival Ahmed Shafiq because they feared Islamic rule.

He said he carries "a message of peace" to the world and pledged to preserve Egypt's international accords, a reference to the peace deal with Israel.

He also paid tribute to nearly 900 protesters killed in last year's uprising.

"I wouldn't have been here between your hands as the first elected president without… the blood, the tears, and sacrifices of the martyrs," he said.

In the lengthy and redundant speech, Morsi appeared to be struggling to compose his sentences. Wearing a blue suit and tie, he looked stiff and uncomfortable and did not smile throughout as he read from a paper. He was nonconfrontational and did not mention the last-minute power grab by the ruling military, instead praising the armed forces.

Left on the sidelines of the political drama are the liberal and secular youth groups that drove the uprising against Mubarak, left to wonder whether Egypt has taken a step towards becoming an Islamist state. Some grudgingly supported Morsi in the face of Shafiq, who was Mubarak's last prime minister, while others boycotted the vote.

Morsi will now have to reassure them that he represents the whole country, not just Islamists, and will face enormous challenges after security and the economy badly deteriorated in the transition period.The elections left the nation deeply polarized with one side backing Shafiq, who promised to provide stability and prevent Egypt from becoming a theocracy. Because of his military career, many saw him as the military's preferred candidate.

In the other camp are those eager for democratic change and backers of Morsi's Muslim Brotherhood who were persecuted, jailed and banned under Mubarak but now find themselves one of the two most powerful groups in Egypt.

The other power center is the ruling military council that took power after the uprising and is headed by Mubarak's defense minister of 20 years.

Just one week ago, at the moment polls were closing in the presidential runoff, the Supreme Council of the Armed Forces (SCAF) issued constitutional amendments that stripped the president's office of most of its major powers. The ruling generals made themselves the final arbiters over the most pressing issues still complicating the transition— such as writing the constitution, legislating, passing the state budget— and granted military police broad powers to detain civilians.

"I am happy the Brotherhood won because now the revolution will continue on the street against both of them, the Brotherhood and the SCAF," said Lobna Darwish, an activist who has boycotted the elections.

Also, a few days before that constitutional declaration, a court dissolved the freely elected parliament, which is dominated by the Muslim Brotherhood, leaving the military now in charge of legislating.

Brotherhood members and experts said the results were used a bargaining chip between the generals and the Brotherhood over the parameters of what appears to be a new power-sharing agreement. The country's new constitution is not written and the authorities of the president are not clear.

This is the first time modern Egypt will be headed by an Islamist and by a freely elected civilian. The country's last four presidents over the past six decades have all came from the ranks of the military.

"Congratulations because this means the end of the Mubarak state," said Shady el-Ghazali Harb, a prominent activist who was among the leaders of the protests in January and February last year.

Morsi narrowly defeated Shafiq with 51.7 percent of the vote versus 48.3, by a margin of only 800,000 votes, the election commission said. Turnout was 51 percent.

The country is deeply divided between supporters of the Brotherhood, liberals and leftists who also decided to back them as a way to stand up to the military, and other secular forces that fear the domination of the Brotherhood, and grew critical of it in the past year. The small margin of victory for Morsi also sets him up for a strong opposition from supporters of Shafiq, viewed as a representative of the old regime.

Naguib Sawiris, a Coptic Christian business tycoon who joined a liberal bloc in voicing opposition to the Muslim Brotherhood a day before the results were announced, said he expects the new president to send a reassuring message to Egypt's Christian minority who represent around 10 percent of the population of 85 million.

"There are fears of imposing an Islamic state ... where Christians don't have same rights," Sawiris told the private TV station CBC. Morsi "is required to prove the opposite. ... We don't want speeches or promises but in the coming period, it is about taking action. ... He was not our choice but we are accepting it is a democratic choice."