Clashes between rival demonstrators erupted yesterday in Egypt’s second city Alexandria, on the eve of the final round of a referendum on a divisive new constitution pushed by Islamists.

Riot police, with orders to act “decisively”, formed a barrier between several thousand Islamists and hundreds more opposition protesters and used tear gas to put down the street battles.

Medics said 40 people were hurt, while AFP correspondents at the scene said a bus and several cars were set on fire.

In the first round held in half of Egypt last weekend, Alexandria voted in favour of the constitution. It has seen clashes break out on several occasions amid nationwide rallies for and against Islamist President Mohamed Morsi.

Early this month in Cairo, the confrontations turned deadly outside of Morsi’s palace. Eight people were killed and hundreds were wounded.

The Army has since deployed 120,000 soldiers to bolster 130,000 police tasked with maintaining security during the volatile voting.

The secular-leaning Opposition sees the proposed constitution as weakening human rights and opening the way to creeping strict sharia-style Islamic legislation under Morsi. It is urging a no vote in today’s second round.

Analysts said it was almost certain the new constitution would be adopted – but that such an outcome would not end Egypt’s political crisis.

The ongoing instability is hurting Egypt’s economy, which has been limping along since the popular uprising that ousted the 30-year autocratic regime of Hosni Mubarak early last year.

The International Monetary Fund has put on hold a €3.6 billion loan Egypt needs to stave off a currency collapse, and Germany has indefinitely postponed a plan to forgive €240 million of Egypt’s debt.

The head of the National Salvation Front Opposition Coalition, former UN Atomic Energy Agency Chief Mohamed El Baradei, warned in an online video that “the country is on the verge of bankruptcy”.

He said “a solution is still possible,” as long as Morsi was prepared for “sincere dialogue” and allowed a whole new constitution to be drafted through a more inclusive process.

Supporters of both sides have taken to the streets to sway voters to their side of the debate in the run-up to the second round of the referendum.

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