Israel was established three years after the end of World War II, and the German government has paid billions in reparations to Holocaust survivors and positioned itself as a leader in combating anti-Semitism.

Under Merkel, it has been perhaps Israel's strongest European ally.

Accompanied by Yad Vashem Chairman Avner Shalev, Merkel participated in a memorial ceremony for the six million victims of the Nazi-led Holocaust.

"The Jews in Germany suffered from hatred and violence that the world did not know was possible," she wrote in the memorial's guest book.

"What came later is a crime that has no equal - the teardown of civilisation - the Holocaust."

From there, she went to a different ceremony in Jerusalem where she was granted an honorary doctorate from Haifa University and answered questions from local students.

Merkel is in Israel for the latest in a series of joint government consultations. She is accompanied by much of her Cabinet, a large business delegation and a new official in charge of combatting anti-Semitism.

The visit is expected to focus on economic issues, with an emphasis on innovation, technology and development projects.

Australian Associated Press