"If the whole euro zone is in danger, the EMF must be able to give long-term credits in order to help countries", Merkel told the Frankfurter Allgemeine Sonntagszeitung.
Macron wants to turn Europe's existing bailout fund into a European Monetary Fund (EMF), to act as a buffer in any future financial crises in the bloc, which was almost torn apart in a debt crisis in 2009.
In addition, Merkel spoke positively about some of the ideas of French President Emmanuel Macron for greater solidarity in the euro area and the wider European Union.
She proposed offering short-term credit lines to stricken countries, but maintained strict conditions for support: "always subject to special conditions of course, for a limited amount and with complete repayment".
The French president's office welcomed Merkel's comments, saying it was a positive move testifying to the European commitment of the German chancellor.
"We aim to make ourselves a little more independent of the International Monetary Fund", she said.
Several dead as Guatemala volcano erupts
A disaster authority spokesman said a change in wind direction was to blame for the volcanic ash falling on parts of the capital. Authorities in Guatemala say six people have been killed and 20 injured by the eruption of a volcano southwest of the capital.
Neymar on fast track to full fitness
After that, my first concern was the Real [Madrid] Champions League match [round of 16 second leg]. "I had two more days to stay at home but I made a decision to come early and start now".
UK plans to give Northern Ireland joint UK, EU status
If there is no Brexit deal it is likely customs officials will have to carry out the checks and it will be the job of the police to protect them.
It ended three months of political deadlock in the wake of inconclusive March 4 elections.
The new tariff elicited a firm approach from Canadian Prime Minister Justin Trudeau, who denounced the punitive tariffs as "totally unacceptable" and "an affront", saying that the very idea that Canada could be considered a national security threat to the United States is "inconceivable".
She said that while solidarity among members of the single currency bloc was important that principle "should not lead to a debt union".
German Chancellor Angela Merkel said in an interview on Sunday that she supports the idea of a joint European defense force, adding that the initiative could even be open to UK's participation after Brexit, Politico reports.
Berlin had always been sceptical of the move due to its stronger transatlantic posture on defence and the state of its own military, which it has acknowledged is under-funded and poorly equipped.