GETTY German Chancellor Angela Merkel

FREE now and never miss the top politics stories again. SUBSCRIBE Invalid email Sign up fornow and never miss the top politics stories again. We will use your email address only for sending you newsletters. Please see our Privacy Notice for details of your data protection rights.

The German leader, who cut short her summer holiday to speak after a string of Islamist attacks rocked the country, said the entire continent was being “ravaged” by terrorism. She described recent attacks in Ansbach, Wurzburg and Munich as “horrifying and depressing” but insisted Germany would not turn its back on people fleeing the Middle East. In the wake of the killings, Mrs Merkel said Germany now needed a better “early warning system” to spot radicalised Muslims among the newly-arrived migrants. She said the central government would “redouble its efforts” against the threat, increasing staff numbers and resources for security services.

She said: "The terrorists want to make us lose sight of what is important to us, break down our cohesion and sense of community as well as inhibiting our way of life, our openness and our willingness take in people who are in need. "They see hatred and fear between cultures and they see hatred and fear between religions. “We stand decisively against that.”

The terrorists want to make us lose sight of what is important to us, break down our cohesion and sense of community Angela Merkel

She added that Germany would "stick to our principles" and "give shelter to those who deserve it". Economists have warned that Germany's shrinking population could hit growth and many now believe Mrs Merkel's fondness for large-scale migration is aimed at ensuring the country maintains its working-age population. However, she also hinted that Germany would act in the future to limit the numbers that were arriving at its borders. Asked if reducing the flow of migrants was a priority, Mrs Merkel responded: “Yes of course this is one of my objectives, immigration from last year was marked by a illegal immigration, human trafficking, and this is not something that we can accept. “Thousands die in the Mediterranean and we have said two things: first that we have to legalise the flow and that is why the voluntary agreement with Turkey contains humanitarian quotas, and also…a country like Germany, as strong as Germany, can not continue to take in such a flow of migrants and we have to limit the numbers. “We say that the refugees can lead a good life close to their homes and that is why three billion euros are earmarked for refugees in Turkey. “This is our responsibility, i am convinced of that. But she continued: “I am not going to say that we are going to welcome any more refugees, but we have to work hard to combat the root causes.”

Horrific axe attack on German train Tue, July 19, 2016 Three passengers have been seriously injured after a teenage refugee ran amok on a busy commuter train with an axe and a knife. Play slideshow EPA 1 of 10 Blood stains are seen on the regional train on which a man allegedly wielding an axe attacked passengers in Wuerzburg

Speaking defiantly amid the escalating poltiical and security crisis in Germany, Mrs Merkel repeated several times the mantra "We can do this" after spelling out the "major litmus test" that the country was now facing. She also spoke of speeding up the process of sending home failed asylum seekers, after it emerged the Syrian migrant who detonated explosives near a music festival in Ansbach was refused the right to stay in Germany. In an admission of the dangers the migrant crisis has posed to security in Europe, Mrs Merkel also said that attacks in Paris last November was proof that terrorist fighters were being smuggled in among the flow of people arriving from the Middle East and Africa.

She said the attacks had “mocked” Germany and damaged the reputation of the majority of refugees in the country, who are law-abiding. The German government will now look to take “additional measures” to counter the jihadi threat, although Mrs Merkel refused to be rushed into outlining exactly what these might be. Germany must conduct a comprehensive review before taking any steps in response to the attacks, she said. Mrs Merkel added: “These events create major concern and fears, but fears cannot inform us in political action and I will do my utmost to prevent these attacks from happening again. “We are not the only ones [affected by terrorism]. Governments need to live up to their responsibilities to restore confidence.”

GETTY German Chancellor Angela Merkel poses for the media as she arrives at a press conference in Berlin

EPA Chancellor Merkel says Germany will 'stick to our principles' & give shelter to those who deserve it