EU Pledges 500m Euro for Egypt Conditional on IMF Agreement

The European Union offered Egypt macroeconomic assistance of 500 million euros, as well as between 150 and 200 million euros towards economic recovery, the president of the European Commission said. Jose Manuel Barroso said the macroeconomic aid would be granted on condition that the country reaches an agreement with the International Monetary Fund (IMF). "We are ready to offer macro financial assistance worth 500 million euros, provided the agreement that Egypt is currently initiating with the IMF materialises," Barroso told reporters at a joint news conference with Egypt's President Mohamed Mursi.

"In addition, European Union is also ready to consider a budgetary support operation of 150 million to 200 million euros in support of an agreed economic recovery plan." Mursi was in Brussels for his first visit to Europe since becoming Egypt's first freely elected leader in June, hoping to reassure the European Union of his democratic credentials and win pledges of economic aid.