In accepting the compromise, Merkel looks to be having a last throw of the dice to avert unilateral action by Germany that she argues would risk a "domino effect", collapsing the entire European Union asylum process and unravel the bloc's already frayed unity. Without the CSU, Merkel's coalition, which also includes the Social Democrats, would lose its parliamentary majority. His party holds a leadership meeting Monday which could authorize Seehofer to push through his demand.
The Bild newspaper reported that they would approve plans for Interior Minister Horst Seehofer, the longtime party leader, to seal the borders to previously registered migrants, but would leave it to him to decide on the timing.
Merkel stressed Monday that she doesn't want to see Germany unilaterally turn back migrants at its borders, as Interior Minister Horst Seehofer has been advocating.
Asked in Berlin whether her government can work well until the end of its term in 2021 and whether she is still in full control, Merkel replied: "Yes to both".
Merkel and Macron jointly stressed the need for an EU-wide solution to the migration crisis that is now casting a shadow over cooperation between European neighbors, according to German news agency dpa.
Mr Schmieding said: "She will need a bit of a compromise here and there".
By contrast, Merkel has warned of a resulting domino effect as Germany's neighbors rush to shutter their internal Schengen borders and is calling for a joint European solution to the "refugee crisis" to be reached within the next two weeks.
"Our goal remains a European answer to these challenges", she said.
The sum will be a "real budget with annual revenues and spending", said French President Emmanuel Macron after talks with the German leader, adding that Paris and Berlin hoped to have it in place by 2021.
Merkel is under strong pressure from her conservative allies to take a harder line on migration. More than a million migrants crossed the Austrian border into Germany through Bavaria since 2015.
Most first arrived in Bavaria, which borders Austria.
NELSON: She said it's vital to know what will happen to any migrants barred from entering Germany so they don't end up back here.
Merkel and Macron have both stressed that, as US President Donald Trump openly challenges the European Union with a trade war and over security and climate policy, the bloc must learn to stand its ground on the world stage.
Several high profile crimes by migrants - including the 2016 Christmas market attack by a failed Tunisian asylum seeker as well as the recent rape-murder of a teenage girl allegedly by an Iraqi - have also helped to fuel anger. Around 30 per cent came from conflict-torn countries such as Syria and Iraq.