He said another agreement with Iran should be signed.
"The civil war in Syria and the fight against Islamic terrorism have escalated into a regional conflict of an enormous scale, which can not be resolved without Russia, Turkey, Iran, Saudi Arabia, Jordan, and, I would say, Europe", Merkel said in the Bundestag.
German Chancellor Angela Merkel said the country is committed to fulfilling its global responsibilities.
"This agreement is anything but ideal, but Iran complies, according to the IAEA, with its obligations under this deal".
Merkel described the deal as "everything other than ideal", but argued that global nuclear authorities said Iran was sticking to its commitments.
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Merkel told lawmakers that Germany's economy is on a good path and the government plans to increase its spending on defense and scientific research to ensure the country can meet the security challenges of the future and remain a leading industrial power.
The deal between Iran and six world powers lifted most worldwide sanctions in 2016 in return for Tehran curbing its nuclear programme, under strict surveillance by the United Nations nuclear watchdog.
Von der Leyen said on Monday, however, that the increase outlined by her department would demonstrate to worldwide partners that Germany remained committed to its collective security obligations under the North Atlantic Treaty Organisation framework. In particular, the European Union and Iran would maintain and deepen economic ties, including in the area of oil and gas supplies.
President Donald Trump announced last week the USA would pull out of the 2015 accord, which is created to keep Tehran's nuclear ambitions in check and took over a decade to negotiate.