The German government is to hold an emergency meeting to consider “all the pressing issues arising” from the influx of refugees in the country, according to a spokesman for Chancellor Merkel.
Local authorities have been complaining that they have insufficient funds to house the refugees and several states have asked for more federal funding to help.
The federal government promised €1 billion in 2015 and 2016 in state funding, but the pledge was made before the numbers shot up.
A recent opinion poll indicated that 58% of people feel a climate of hostility exists towards foreigners in Germany. Tensions have been particularly high in areas where foreigners have traditionally been few.
There has been an increase in attacks against refugee shelters, including death threats to officials and arson attacks on centres.
The number of asylum seekers to Germany more than doubled in the first quarter to 85,394. For all of 2013 there were 100,000 refugees taken in.
The aggravated violence in Syria has pushed up the numbers.
The 16 states in Germany are obliged to take in a certain percentage of refugees based on the size of the local population.
With the unforeseen increase in refugees, many towns and cities have hurriedly converted empty buildings or gymnasia into shelters.
Both industry and the government argue that immigrants are needed in light of the country’s ageing population and its low birth rate. The percentage of children under the age of 15 is just 13%, the lowest of any EU country.