Progress on Banking Stalemate in Europe BERLIN - Germany's finance minister signaled on Monday that his country might be ready to compromise on two main sticking points for Berlin on a mechanism for shutting failing banks in the euro zone. Germany, first among equals on financial and economic matters in Europe, hopes to resolve the issues of who decides to close a failing bank, and who pays for it. Wolfgang Schäuble, the finance minister, told reporters in Brussels as he arrived for two days of meetings by European finance ministers that he was confident a deal could be reached by year's end. An agreement on how to handle tottering financial institutions is seen as a priority for next week's meeting of European Union leaders, putting pressure on European finance ministers to reach a tentative deal before their meetings end on Tuesday. Mr. Schäuble has long warned that giving a single European agency the power to wind down failing banks would violate guarantees of sovereignty in his country's constitution. According to German government sources, a possible compromise may be possible by changing the legal framework under which it would be drawn up. Berlin now appears willing to allow what would amount to a chain of responsibility shared by a resolution board of experts, including representatives of the European Central Bank, the European Commission and the member states. But that would require the country of the affected bank to agree to the measures, according to the sources, who were not authorized to speak publicly. Another sticking point has involved how to finance the banking resolution fund, which European Union officials have said they want to be worth about 70 billion euros, or $96 billion, by the time it is fully funded in 2025. The money would come from levies on banks. It was not clear what compromise Germany could live with on the source and dissemination of those funds. Mr. Schäuble said he was confident an agreement would be reached, but he indicated that it might not happen by Tuesday. That could mean the finance ministers would have to convene again before the heads of state gather in Brussels on Dec. 19 and 20. "It will be a lot of work," Mr. Schäuble said. I don't know if we will succeed by the end of one meeting or will need another. But I really believe that we will make it. Last Friday, Mr. Schäuble convened a discussion here in Berlin about a banking deal with his counterparts from France, Italy, the Netherlands and Spain, as well as Lithuania, which currently holds the European Union's rotating presidency. No details emerged, but the meeting itself reflected a decided push from Berlin to reach a compromise on dismantling failed euro zone banks in a way that does not create dangerous repercussions for the broader financial system.