German parliament gives green light to Merkel ahead of key summit
The vice president of the Bundestag lower house of parliament said 503 lawmakers had voted in favor of the motion, 89 had voted against and there were four abstentions.
The parliamentary vote binds Merkel to sticking closely to the text of the motion passed by the Bundestag in her negotiations in Brussels, thus strengthening her bargaining power.
EU leaders will meet to try to agree a range of measures to tackle the spiraling euro zone debt crisis but the prospects of a comprehensive deal looked dim, with disagreements remaining in several crucial areas.
Addressing parliament before the vote, Merkel urged lawmakers to live up to their "historic duty" and said Europe was in its toughest period since the end of World War Two.
"The world is watching Germany and Europe to see if we are ready and able to take responsibility. If the euro fails, Europe fails," said Merkel.
Supported by the opposition Social Democrats (SPD) and Greens, Merkel won the vote easily but it was unclear initially whether she had to rely on the opposition to get the vote through.
Several rebels from within her own centre-right coalition had said they would vote against the motion, highlighting the struggle Merkel faces in convincing Germans of the need for Europe's biggest economy to help its indebted partners.
Merkel is battling sliding ratings for herself and her centre-right coalition over her handling of the euro zone crisis. Critics at home and abroad have accused her of taking a dithering approach that has exacerbated the debt crisis, and frustration is rife.
The proposals, to increase the efficiency of the 440 billion euro ($610 billion) European Financial Stability Facility (EFSF) without pouring more taxpayers' money into it, are the subject of fierce debate in Europe's largest economy and biggest contributor to the rescue fund.
Disagreement on several issues remains between the 17 euro zone leaders meeting in Brussels, including on exactly how to scale up the EFSF . The motion passed by the German parliament states that the EFSF cannot be financed through the ECB and that with a leveraged EFSF, the ECB will no longer need to buy bonds on the secondary market.
Merkel's hands have been tied by a Constitutional Court ruling last month, which demanded a greater say for German lawmakers. That has frustrated some EU leaders eager to implement quick solutions.
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