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The German chancellor described the Berlin Christmas market attack, which killed 12 people and injured 48 others as “sickening” and said 2016 had been a year of “severe tests”. Despite the bloody and threatening attack, Mrs Merkel insisted Germany would not cower before terrorism.

EPA Angela Merkel's insist Germany will not cower in fear of terrorism in New Year message

She said: "As we go about our lives and our work, we are saying to the terrorists: 'You are hate-filled murderers, but you do not determine how we live and want to live. We are free, considerate and open.” As well as the Berlin attack, perpetrated by Tunisian jihadi Anis Amri, Germans were also targeted in a number of terror incidents earlier in the year. In June, a teenage Afghan refugee armed with an axe injured and slashed five people on a train in Wuerzberg.

Angela Merkel in pictures Tue, August 8, 2017 Angela Merkel has served as German Chancellor since 2005 and Leader of the Christian Democratic Union since 2000. We take a look at her political career in pictures. Play slideshow AFP/Getty Images 1 of 83 Angela Merkel through the years

GETTY Mrs Merkel described the Berlin Christmas market attack as 'sickening'

And in July, a Syrian asylum seeker whose application had not been granted, blew himself up outside a bar in Ansbach and wounded 15 bystanders. Despite mounting criticism over her decision to allow more than a million migrants into Germany last year, which many claim has increased the nation’s terror threat, Mrs Merkel defended her open border policy. She said images of carnage from war zones such as Aleppo show how “important and right” it is for Germany to provide a home to those fleeing conflict.

GETTY The German chancellor's defiant New Year's message comes as the country mourns the Berlin attack