"Do the advantages of Monday's result outweigh the disadvantages. My answer is a completely convinced 'yes'," Merkel told the Bundestag lower house of parliament, with reference to a deal for further aid.

"The alternative to this agreement would not be a 'time-out' from the euro ... but rather predictable chaos," she added.

The Bundestag is expected give the government the backing it is seeking in a vote following Friday's debate, at which Merkel was the first speaker.

(Reporting by Caroline Copley and Paul Carrel; Editing by Robin Pomeroy)