A lot of people are greatly misunderstanding what Merkel is doing with this whole issue.
What she has actually said is that prosecutors would be able to bring charges.
The charges are not being brought by her, she is saying there are laws which enable charges to be brought.
What is also being done is that she has set in motion plans to repeal the laws banning insults to foreign leaders.
That's it.
She is saying "this is the law now, you broke the law now, it is possible for charges to be brought" and "but that law is stupid, so I'm going to try and change it".