The former Ukip chief said Europeans are now demanding action after a known Tunisian national was allowed to cross through the Schengen Zone before carrying out the violent Berlin terror attack.
The German Chancellor, who welcomed over one million refugees into the country, many without proper vetting, has altered her tone after Tunisian Anis Amri travelled from Germany through France and to Italy without detection after he is alleged to have killed 12 and injured 14 during the violent attack.
Coming under pressure from far-right Alternative for Germany as she runs for a fourth term in office, Mrs Merkel said Islamic terrorism poses the “greatest threat” to Germany during her New Year message.
Reflecting on her comments, Mr Farage told Fox News claimed the EU’s flawed free movement policy was to blame.
He said: “We saw that horrendous crashing into the Christmas market in Berlin just before Christmas.
“The person driving that lorry had served a prison sentence in Italy – through the European Union’s free movement he got to Germany.
“He had applied for asylum and refugee status, and having been refused, he hadn’t been removed. And then, when he was the most wanted man in the whole of Europe, he was able to cross the border into France and into Italy when he was finally caught in Milan.
“I think the public, right across Europe, are furious that the Schengen free movement area doesn’t just mean the free movement of good people – it means the free movement of bad people, Kalashnikovs, explosives and everything else.”
The long-term anti-EU campaigner, who is an advocate for tighter European border controls, said it was about time that Angela Merkel accepted the system’s failings.
Nigel Farage concluded it is not “racist or inflammatory” to recognise the continent-wide problem caused by Islamic terror.
“At last, what we’re seeing from Mrs Merkel is some recognition,” he continued. “It is not racist, it is not inflammatory, it is not wrong to recognise that we have a problem.
“However, let’s just remember, she was the person who invited into Germany over a million people without being able to security check a single one of them.”
But the threat on the Continent could soon reach British soil because small ports, marinas and beaches across the country are not sufficiently policed, according to a major report.
David Anderson, the Independent Reviewer of terror monitor Terrorism Legislation, warned concentrating counter-terrorism activities at hub ports “risked having the effect of reducing the coverage of General Maritime (GM) and General Aviation (GA) in small ports and airports and in remote beaches and landing places on the south coast”.
The terror watchdog chief said police officers at ports in Kent “feared that coverage of beaches and marinas would be reduced and that ‘no evidence’ would be wrongly construed as ‘no problem’.
Mr Anderson added: “It is conceivable that they might be an option for returning foreign fighters or other terrorists, as they appear to be among the migrants who are sometimes reported to be using them, or seeking to use them, in order to get into the country.”