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I've just come across this idiom while reading http://tinyurl.com/6lycq8e . The broader context:

"Showing a little leg on deficit reduction is a highly risky proposition these days: the scantest hint of skin and you risk losing a limb."

Could anyone help me understand this term?
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Show some leg--literally, to expose your legs to view. Thus, to tempt sexually or to flirt or to seek attention. In the case of the given sentence, "showing a little leg" is to reveal your willingness to discuss the issue, make compromises.

Does this help?
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Thank you, Doctor D Emotion: smile
I suspect it means that you show something which isn't supposed to show, something supposed to be behind the veil or sealed under some cover. coming from a dress which suppoed to cover the whole legs but showing a little bit of leg.