Merkel signals leeway on EU budget rules, insists on Juncker

German Chancellor Angela Merkel speaks during a general debate in the lower house of parliament, the Bundestag, in Berlin, June 25, 2014. REUTERS/Thomas Peter

BERLIN (Reuters) - Germany's Angela Merkel signalled her readiness on Wednesday to give EU states more flexibility within current budget rules to promote growth and job creation, but made clear she will push her choice of European Commission chief over British objections.

The chancellor appeared to come down clearly on the side of a more lenient interpretation of the European Union's Stability and Growth Pact to help countries like Italy and France balance the push for reform with the need to reduce high unemployment.