"Islam is not part of our tradition and identity in Germany and so does not belong in Germany"

This statement is of course 100% correct. So long as there has been any concept of a German people or a German nation, Christianity is the only religion to have been a part of that.

Although this is most likely one of those xenophobic (nothing wrong with that) comments that European leaders throw about every once in a whlie to boost their popularity. Actions rarely follow from their words.