As Italian Prime Minister Matteo Renzi kicked off two days of talks in Rome with Merkel and senior EU officials, the German leader said Europe must defend its borders "from the Mediterranean to the North Pole" or suffer the political consequences.
Support for far-right and anti-immigrant parties is on the rise in several countries on the continent which saw more than a million people arrive on its shores last year.
Merkel told a press conference with Renzi that Europe's cherished freedom of movement is at threat, with ramped-up border controls in response to the crisis raising questions over whether the passport-free Schengen zone can survive.
With over 28,500 migrants arriving since January 1, Italy has once again become the principal entry point for migrants arriving in Europe, following a controversial EU-Turkey deal and the closure of the Balkan route up from Greece.
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Renzi lashed out at Austria today, describing Vienna's position as "anachronistic".
"This is the wrong attitude even if there is a migrant crisis," he said.
Italy is pushing for NATO naval patrols off Libya in time for the summer people-smuggling season, and a deal with Libya on the model just concluded with Turkey.
Today, Renzi stressed the need for "a strategy for Africa" to stem the influx from there.
"The important thing is to invest in Africa," Renzi said.
But he added that Germany and Italy were in disagreement over how to fund the plan, with Germany against using eurobonds to offer finance to African countries.