It may sweeten the deal for the members of the SPD, many of whom are sceptical of the disastrous elections results following four years as a junior partner in the coalition.
But the final round of negotiations has thrown up several sticking points.
Monday's talks were expected to focus on improving public healthcare, such as by changing billing rules for doctors, who earn more by treating privately insured patients.
The infringements against Germany, which can be started for delayed implementation or inadequate conversion into national laws, relate to policy areas like air pollution, water quality and fire protection.
"Regardless of whether a ministry is led by the Social Democrats or the (Christian Democratic) Union, you can only spend the money you have", Merkel said.
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They indicate that they want to "strengthen" Europe's investment capacities. He belongs to the SPD's conservative wing, raising the prospect of evolution rather than revolution in how Germany transitions from the era of Wolfgang Schäuble - prioritising balanced budgets at home and in the European Union - to EU investment and stimulus politics.
Partners in capitals from Paris to Washington and global economic organisations have urged Germany for years to support its own and neighbours' growth by boosting spending.
They express their will to fight tax dumping and money laundering.
Ahead of the negotiations for the European Union budget after 2020, the coalition partners support a "strong European Union cohesion policy in all regions".
Merkel's office said in a statement a press conference with Italian Prime Minister Paolo Gentiloni had been pushed back to 6 p.m. (1700 GMT) from 1.10 p.m. (1210 GMT).
"It's the most Europeanised approach of a German government for years", said Bernd Huetteman, a political scientist and vice-president of the European Movement.
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The coalition would make the rightwing populist party Alternative für Deutschland the leaders of the opposition. "This is far more than symbolic", he told EUobserver.
Even if SPD grassroots members give their blessing to the final coalition package agreed on Wednesday morning, a new government is unlikely to be sworn in until March or even early April.
That's a boost for French President Emmanuel Macron's campaign for a joint budget and a common finance minister for the 19 countries that use the euro.
"For sure Macron can use the text for his goal too".
A deal on the division of the key ministries was seen as the last major hurdle towards forming a coalition.
The deal will have to be agreed by SPD members. Visit MarketWatch.com for more information on this news.
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