No, she doesn't recognise that immigration is a problem because it is not. What she has realised is that the huge influx that Germany received was not controllable. On the other hand, what would have happened if Merkel had not allowed all those migrants into the country, what would have happened to them? There are far bigger issues going on, there are so many millions of people in refugee camps and even more who have little or no hope in their lives. Being wilfully blind to that fact dooms us to see even greater movements of desperate people in future and refusing them help will guarantee that more will choose a violent route in their lives.