"The only thing that such a regime understands is economic pressure," - he said in an interview for the German newspaper "FrankfurterAllgemeine Sonntagszeitung”.
"The EU should make clear there can be no political or economic cooperation with it until Egypt has a pluralistic democracy," - he stressed. "We cannot approve of a coup," - said the German Social Democrat.
Schultz also expressed concern over developments in Egypt, stressing that "Europe should consider with all seriousness the appetite this man has for power".
On Friday, the Constitutional Commission of Egypt, dominated by Islamists, approved a draft constitution which the Egyptian opposition perceives as a violation of freedom of religion and freedom of speech.
Morsi urged Egyptians to vote on December 15th for the draft constitution that has effectually split the country.
Egypt to hold December referendum on new constitution
President Mohammed Morsi has said Egypt's new draft constitution will be put to a referendum on 15 December.
He made the announcement before the Islamist-dominated constituent assembly, which rushed to approve the document earlier in the week.
Both the draft constitution and a recent decree giving Morsi sweeping new powers have prompted widespread protests by opponents of the president.
The final draft of the 234 - article constitution was approved by the Constitutional Commission and submitted to the President for signature.
However, his Islamist supporters held their own demonstrations on Saturday.
After receiving a copy of the document, Morsi called on "all Egyptians" to take part in the referendum, whether or not they agree with the draft.
If approved, the new text will overwrite all constitutional declarations - including Morsi's decree issued on the 22 November - and a new parliament should be elected within 60 days.
1 killed, 24 injured during rally in Cairo
One person was killed and 24 injured during a rally of President Mohammed Morsi’s supporters in Cairo on Saturday.
This happened when a large group of people climbed a tree to have a better view of those who spoke at the rally, and the tree broke and fell on the crowd.
The killed man, 47 years old, was one of those who climbed the tree.
All the injured people were taken to hospital.
The rally was held by the party “Muslim Brothers”, of which President Morsi is a member, and a number of other Islamists parties. The rally’s aim was to express support to President Morsi, who recently broadened his authorities by a number of decrees, after which the opposition accused him of being autocratic.
Egypt's Islamists rally for Morsi
Thousands of Islamists rallied on Saturday in support of President Mohamed Morsi's new expanded powers and the drafting of a contested charter, in a clear show of Egypt's widening polarisation.
The demonstration in the heart of Cairo comes a day after tens of thousands of Morsi opponents converged on Tahrir Square to protest against the president's decree and the speedy adoption of the draft constitution.
The charter has taken centre stage in the country's worst political crisis since Morsi's election in June, squaring largely Islamist forces against secular-leaning opponents.
It is expected to go to a popular referendum within two weeks.
Morsi supporters to hold a mass rally
Islamist backers of Egypt's President Mohammed Morsi are to hold a mass rally to support his sweeping new powers and the drafting of a constitution seen by many as undemocratic.
The demonstration in Cairo comes after days of rival protests by the supporters and opponents of the president.
His opponents are angry that the draft constitution was hastily backed by the Islamist-dominated assembly on Friday.
Egypt's top court is to rule whether the assembly should be dissolved.
Senior judges have been in a stand-off with the president since he granted himself sweeping new powers last week.
Saturday's mass rally in support of Morsi near Cairo University has been called by the Muslim Brotherhood and other Islamist parties.
They say the huge turnout would show that the president's recent moves are supported by the public.
Voice of Russia, IF, BBC, TASS, AFP