He has revoked a military decree curbing his powers and sacked military chiefs.

Egyptian President, Mohamed Mursi yesterday August 13 justified his unprecedented decision on Sunday August 12 to retire the head of the Armed Forces, Field Marshal Mohammed Hussein Tantawi, and the Chief-of-Staff, Gen. Sami Annan, as being in the best interest of the nation.
Speaking on the eve of the shakeup that also saw the President reclaiming his executive powers by annulling an earlier decree of the defunct Supreme Council of the Armed Forces, SCAF, Mohamed Mursi said the move was not intended to embarrass any institution or targeted at any individuals, the BBC said. Mursi praised the work of the Armed Forces, saying his decision would allow them to focus on professional tasks. Earlier this week, Mursi sacked the head of the intelligence service.
According to Al Jazeera Television, Abdul-Fatah al-Sessi replaces Tantawi as Defence Minister and General Commander of the Army, while Lieutenant-General Sidki Sayed Ahmed was named as Annan's replacement. A presidential spokesman said Gen. Annan and Field Marshal Tantawi had been appointed as presidential advisers and given Egypt's highest State honour, the Grand Collar of the Nile. Mursi also ordered the retirement of the commanders of the Navy, Air Defence and Air Force. A senior judge, Mahmoud Mekki, was named Vice President. All decisions took immediate effective.
Reacting to the announcement on Sunday night, thousands of Egyptians poured into Cairo’s Tahrir Square that played host to the protests that ousted former President Hosni Mubarak in 2011. They chanted support for the President’s move, taunting retired Field Marshal Tantawi who had hitherto been considered as untouchable.
Correspondents say the measures that took many by surprise were probably prompted by the August 5 attack on a border patrol in the Sinai Peninsula on the Gaza border that left 16 Egyptian soldiers dead. The latest decisions might escalate the power struggle between Mursi - who took office on June 30 - and the military.
As head of SCAF, Field Marshal Tantawi became Egypt's interim ruler after President Mubarak was ousted in February 2011 following mass protests. Under the interim constitutional declaration issued by SCAF before President Mursi was sworn in, the Head of State could not rule on matters related to the military, including appointing its leaders. The Council also dissolved Parliament that was dominated by the President’s party.