The European Union (EU) on Thursday announced further assistance to help Egypt recover from its economic woes.

"We are ready to offer macro financial assistance worth 500 million euros (645 million U.S. dollars) provided the agreement Egypt is currently negotiating with the IMF materialises. This agreement is an agreement that we strongly support," said Jose Manuel Barroso, President of the European Commission, following his meeting with visiting Egyptian President Mohamed Morsi.

"In addition, the EU is also ready to consider a budget support operation of 150 to 200 million euros in support of an agreed economic recovery plan," said Barroso.

The EU has made available 449 million euros to Egypt from 2011 to 2013 to support several sectors in the country. This year, the EU will disburse 130 million euros for projects related to job creation, youth employment, and technical and vocational training.

Egypt is facing a worrying economic situation following the loss of income from tourism and foreign direct investment. To foster further EU-Egypt economic cooperation, the two sides on Thursday announced an EU-Egypt Task Force that will meet on Nov. 14-15 in Cairo.

"The task force is meant to act as a catalyst for collective EU support, to encourage the democratic transition and to help restore economic and investor confidence," said EU foreign policy chief Catherine Ashton following her meeting with Morsi.

"Egypt is facing the challenge of building a better and democratic future, the EU would stand by their side as a friend, a neighbor and a partner," Herman Van Rompuy, President of the European Council, said after meeting Morsi.

EU leaders also condemned the killing of U.S. officials, including Ambassador Christopher Stevens, in Benghazi and the use of religion to fuel extremism.

Morsi expressed sorrow and solidarity with the U.S. people and authorities, but also condemned the movie made by a U.S. director. He also pledged efforts to protect the U.S. diplomatic missions on Egyptian soil.