Mrs Merkel set out her vision to address the polarisation in Germany in a speech at the Bundestag – which marked the start of the new government and her fourth term as Germany’s Chancellor.
She conceded society had grown more divided, which in turn had fuelled the far right within Germany – and saw Mrs Merkel struggle to form a government after disastrous election results.
She defended her decision welcoming migrants into Germany in 2015 but said that the summer of chaos, which saw borders breached across the EU, could not be repeated.
Addressing the lower house of parliament Mrs Merkel said: “Something has changed in our country, although our country is doing well, although our economy is doing its best since reunification, many people are worried about the future.”
The recent election in September has seen the anti-immigratnt Alternative for Germany (AfD) take their place in parliament for the first time.
Mrs Merkel admitted German people’s concerns about the future has hurt both her own conservative party the Christian Democratic Union of Germany (CDU) and her new coalition partners the Social Democrat’s (SPD).
It has taken several months of negotiating for a new government to be formed and has seen the CDU cede major government positions to the SPD in order for a deal to be agreed.
This “grand coalition” has resulted in the AfD now leading the opposition, after they won 12.6 per cent of votes and 94 seats.
In setting out her vision for a more cohesive society Mrs Merkel said that “Islam has become part of Germany”.
She said: “I am convinced, Germany can do this – and Germany means all of us.”
Mrs Merkel plans to get Germany “a good way down the path into the digital age” by the end of the parliament in 2021 and to be able to see “Europe is strengthened”.
She also said she wanted her government to help businesses embrace new digital technologies and announced that research and development spending would be increased to help the economy.
Mrs Merkel said: “At the end of this legislative period, I would like people to conclude that our society has become more humane, that divisions and polarisation were reduced and perhaps even overcome, and social cohesion increased.”