Chancellor Angela Merkel left the door open to a compromise ondebt sharing in the euro area as Italian Prime Minister Mario Montisaid he can help bring Germany round to acting in Europe's “commongood.”

Merkel's veto on allowing Germany to underwrite joint debtissuance in the 17-nation euro region is under fire from herinternational partners as well as the domestic opposition. Whileshe refused to back joint euro-area bonds at a Brussels summit onMay 23, Germany's opposition parties wrung a concession from thechancellor on her return to Berlin yesterday to reconsider aseparate proposal on common liability for sovereign debt.

The blueprint, published in November by Merkel's council ofeconomic advisers, involves a so-called European redemption fundthat would help governments scale back outstanding debt to below 60percent of economic output in return for constitutional commitmentson economic reform. The government and opposition agreed to studythe fund and discuss it further on June 13.

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