The Franco-German compromise gives the nod to various proposals from the European Commission.
The first involves reforms to the euro zone's sovereign bailout fund, the European Stability Mechanism (ESM).
It would act as a backstop to its bank-resolution board, beefing up banking union.
And countries that have been prudent, but suffer an economic shock,
would be given access on relatively lenient terms to a precautionary line of funding, so they could seek money before they lose access to the markets.
So far most ESM lending has been to countries already cut off from markets, and conditional on implementing tough structural reforms.
All this would be a step forward, says Guntram Wolff of Bruegel, a think-tank. But he thinks the reforms should go further.
The French and Germans agreed to keep the governance of the bail-out fund unchanged. But it is too complicated.
In order for it to be tapped, finance ministers must reach unanimous agreement.
National laws mean that parliaments in some countries, notably Germany, must grant their approval.
That could stop the fund winding down a failed bank swiftly over a weekend, as it may need to.
But the Germans insisted on national control, saying that it has not held up decision-making so far.
Their reservations also stymied immediate progress towards a common deposit-insurance scheme.
Mr. Juncker had hoped to soothe northerners' fears with a gradual implementation
during which the common fund would lend to national schemes in times of trouble.
His hope that banking union would be complete by 2019 now seems unrealistic.
A proposal from the commission to create securities backed by a pool of sovereign bonds has been nixed.
Without it, banks will have little incentive to diversify sovereign risk.
Mr. Macron's prize is a concession from Germany on the euro-zone budget. For the first time, the French point out,
Germany has acknowledged that macroeconomic stabilisation is not a matter for national governments only, but a common concern.