"There is a wide agreement between France and Germany when it comes to the proposals although we must work on the details," Merkel told reporters before an EU leaders dinner to discuss a raft of reforms proposed by Macron in a landmark speech on Tuesday.
In the speech in Paris, the 39-year old Macron called on his counterparts to recommit themselves to a stalled European project left damaged by Brexit, the rise of populism and the migrant crisis.
Macron's proposals for a post-Brexit shake-up of the EU include a finance minister, budget and parliament for the 19- member eurozone, as well as an EU-wide "rapid reaction force" to work with national armies.
"For Germany, growth, jobs and competition play a major role," said Merkel, who was elected to a fourth term on Sunday.
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"In any case, I see the president's speech as a solid basis for France and Germany to continue working closely together," Merkel said.
Merkel must now try to form a government likely to include the Free Democratic Party, whose leader Christian Lindner considers Macron's call for a eurozone budget to be a "red line".
Merkel said that given Macron's desire to work closely with Germany, his speech will "certainly influence discussions on forming a new government.
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