Under such a change, "Germany would have to accommodate significantly more asylum seekers," said an Interior Ministry memo, quoted by Der Spiegel.
The legislation has to be approved by the European Council, which is made up of member states' government leaders, to become law.
Refugee policy — particularly the right of refugees to bring their families to safety — has been a major point of discussion between Chancellor Angela Merkel's conservative Christian Democrats (CDU) and the Social Democrats (SPD).
The proposed European Parliament regulations could stymie efforts by the CDU and its Bavarian CSU sister party to restrict family reunifications in coalition talks with the SPD.
Given fervent disagreement among EU member states on asylum rules, it's unclear whether the reform could ultimately pass.