A group of Syrian migrants are suing Germany for not allowing them to register asylum fast enough so they can claim benefits.
About 20 Syrian migrants have filed a case against the Berlin demanding access to shelter and benefits after they have waited over a week to be registered.
Huge crowds gather outside every day and many claim they have been waiting for weeks.
Over 170,000 migrants had flooded into Europe over the last month alone as the refugee crisis continues to spiral out of control.
The country is now considering setting up “transit zones” on its borders, where migrants would be kept while their asylum claims are assessed.
However Mrs Merkel said the proposal would only work in certain cases, and would “not help for thousands and thousands of refugees”.
Until their papers are processed by the State Office for Health and Social Affairs, the refugees have no access to Government refugee shelters or benefits.