Israel sees criticism from "allies" as political cover for the fact that they will do nothing. If they will do nothing, Israel sees this as a green light to continue and escalate. Merkel's criticism acts as tacit approval for Israeli actions. Netanyahu knows this. No western nation has ever taken any action against Israel in spite of the fact that they heartily disapprove of Israel's actions and policies. The Europeans are the people who gave the world two great wars through their stupidity and inaction. They are still at it.
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IDF fires tank shells toward Gaza in response to mortar fire (Haaretz)
from the article: Netanyahu's office: There is no Israel-Germany diplomatic crisis