With the future of the bloc's relationship with Britain to be determined, a crucial shift to a lower carbon world in the balance and crises from Libya to Syria all jostling for attention, there is no shortage of burning issues to tackle.
The Franco-German pair had sketched out the backbone of the fund but it has run into opposition from so-called "frugal nations" like the Netherlands and Austria.
"We hope we'll find a deal (in July), even if the road is still long", said Merkel. "I'm very happy that we agree on the challenges that we want to overcome together".
She said there would be changes to the European Commission's proposal, "but it has to remain a fund that helps, that really also helps the countries that otherwise threaten to be much more affected by the crisis".
Besides its geopolitical weight and economic heft, Germany is taking on custodianship of the bloc with a strong hand as it has so far withstood the health emergency better than most other member states.
Its programme to shore up the German economy totals more than one trillion euros in spending, loans and guarantees.
The EU coronavirus recovery fund will offer grants with no obligation for repayment to states hit hardest by the outbreak.
With an eye on the devastating blow taken by Spain or Italy, Merkel had said that it was "imperative that Germany not only thinks of itself but is prepared for an extraordinary act of solidarity".
"What is very important for many that are still sceptical is the wish that we all come out of the crisis strong", she said.
He said the pandemic is not yet at its peak, and that steps needed to be taken at the European Union level to deal with challenges on the horizon.
She said: "Still, Berlin must help make 2020 the year in which the European Union gets set up to cope with the future".
Last month, Merkel and Macron proposed the creation of a 500 billion euro ($543 billion) European Union (EU) recovery fund for the financial recuperation of the bloc in the wake of the economic damage due to the COVID-19 pandemic. Merkel is holding all the cards and (EU Council chief) Charles Michel will follow that.
"This crisis that we're now experiencing is different compared to any other we have experienced since the founding of Europe", Merkel, in power since 2005, told parliament in an address laying out priorities for the European Union presidency. "The third leg will be restoring ties with USA after the election there".
Proper now the European Union demands management and Angela Merkel, who has been in demand of the German powerhouse for the previous 15 a long time, is not shying absent from that position.
Germany's presidency of the EU Council has until year end to get a deal done.
What is clear is that Merkel's fingerprints will be all over the EU's roadmap.