German Chancellor Angela Merkel parried attempts to get her toaccept more flexible use of the euro-region's rescue funds andcollectively financing debt, while agreeing with leaders of Italy,Spain and France on a proposal to spur economic growth.

In a meeting in Rome, Merkel, Italian Prime Minister MarioMonti, French President Francois Hollande and Spanish PrimeMinister Mariano Rajoy said they would lobby their European Unionpartners to accept a growth plan worth as much as 130 billion euros($162 billion), or about 1 percent of the euro-region's economicoutput. They didn't give specifics about the plan or how it wouldbe financed.

European leaders are looking for a way out of their almostthree-year old debt crisis that has forced four countries to seekbailouts. Leaders are racing to come up with a plan by a summit onJune 28-29 to convince the investors that they can salvage theregion's monetary union.