The chancellor stressed that many people from other countries have helped the economy but added that the government must be able to choose who comes to Germany.
ADVERTISEMENTGerman Chancellor Olaf Scholz underlined the public's wish for "serious politics" rather than "a theatrical performance" after talks about migration with opposition party CDU collapsed on Tuesday.
Addressing the recent success of the anti-immigrant hard-right party Alternative for Germany (AfD) during the two state elections in eastern Germany, Scholz said the AfD is "married to the past" and trying to rob the country of its future.
Although Scholz aggressively defended his coalition government's policy of welcoming migrants, other EU countries, such as Poland, say that the German government's decision this week to extend controls to all its land borders undermines Europe's Schengen zone and could destabilise the EU as a whole.
"There is no country in the world with a shrinking working population that has economic growth. That is the truth we are confronted with," Scholz said, highlighting pensions as one of the most important future tools for the country's youth.
Both the far-left and far-right parties have been capitalising on the struggle of many pensioners to cover costs amid a backdrop of soaring living costs, including energy.
AfD leader Alice Weidel spoke directly after Scholz and said he is the "chancellor of decline".
Pointing at the recent problems at Volkswagen and plans to trim the workforce, she said, "the most famous names are cutting jobs in Germany and relocating abroad because they are no longer competitive here."