The far-right German
National Democratic Party (NPD) has been mired in financial problems and internal disputes. The financial problems are related to heavy duty fines the NPD has incurred for accounting irregularities. A former treasurer was charged in 2008 with embezzling over 700,000 euros and is currently serving a prison term. NPD leader Udo Voigt has described the situation as an "existential crisis".
The NPD has been attempting to tone-down its image in an effort to broaden its appeal. But behind-the-scenes not much has changed. Straight-arm Hitler salutes are still in evidence at closed meetings along with virulent racist attitudes.
NPD leadership contender, Andreas Molau, recently withdrew his candidacy. Molau claimed that incumbent Udo Voigt and deputy chairman Jurgen Rieder were out to get him. Rieder reportedly accused Molau of being "one-eighth Jew" - Molau in turn accused Voigt of being a "compliant puppet of the stock market speculator Rieger."
NPD problems haven't led to a falling off of support for right-wing extremism. If anything the threat has increased. New stats point to an increase in German youth who identify with the far-right. A study suggests one in seven German teenagers - 14.4 percent - have attitudes that are 'highly xenophobic'. Those surveyed agreed with statements such as "Most immigrants are criminal." A further 26.2 percent are described as 'fairly xenophobic'.
These numbers are borne out to some extent by the increase in far-right crime. According to German authorities there were 13,985 such crimes in 2008 - a 27 percent increase over 2007. Most of these were propaganda related offenses. However violent incidents showed an increase, going from 642 in 2007 to 735 last year.
The targets of far-right attacks don't fit the old mold. In fact at the demo against the building of a giant new mosque in Cologne, there was the curious sight of Jewish protesters and neo-Nazis on the same side of the fence. In an effort to make political capital out of local concerns , the NPD formed the Citizens' Movement Pro Munster hoping to play on fears of an 'Islamic invasion'.
Attacks by extremists target foreigners in general, with no one particular group singled out for exclusive treatment. A
Der Spiegel article gives a few examples of the types of crimes that have been making the news.
Typical cases include the beating of a 44-year-old Pakistani asylum seeker in the town of Brandenburg near Berlin last May. He was attacked from behind by men shouting "Get out of here you pig" and sustained serious head injuries, according to Opferspektive, a government-funded group that monitors such attacks.
In Niedergörsdorf near Berlin in June, a man who was overheard speaking Russian in the street was punched by a neighbor who yelled: "You Russian Jew pig, Hitler would have gassed something like you!"
On March 7 in the eastern town of Mügeln, two men assaulted an Indian man outside a pizza restaurant and broke his nose. Prosecutors aren't ruling out a racist motive. Outside that same restaurant in August 2007, eight Indian men were assaulted by a mob chanting "Foreigners Out" in a case that attracted international attention.
The increasing pull of the far-right was on display in Dresden earlier this year. Upwards of 8,000 neo-Nazis showed up to mark the 64th anniversary of the Allied bombing of the city -
link here for photos. Neo-Nazis refer to the Dresden WW2 air attacks as a "Bombing Holocaust" and routinely inflate the numbers of civilians killed in the raids.
The Dresden neo-Nazi presence this year was twice the size of previous years, illustrating the increasing popularity of far-right politics - especially in the east.

Neo-Nazis marching in Dresden
A neo-Nazi group in Dresden
NPD supporters protesting mosque construction
in the Neu Koelln district
When you talk about rising far-right numbers in Germany you have to look to the east. East Germany has been fertile soil for extremists, in part because of the depressed economy. An anti-EU and anti-immigrant platform holds strong appeal.
On the political front the NPD has made some headway in the regional parliaments. It has seats in Saxony and Mecklenburg-Western Pomerania and is looking to elect members to the parliament in Thuringia. On a national level the NPD is weak, but the danger lies in its ability to channel xenophobic attitudes and a culture of impunity that in some cases leads to acts of violence.
Despite the NPD's efforts to present a more moderate image, the xenophobic priorities of the party remain the same. Former NPD official,
Uwe Luthardt, told Der Spiegel "the simple aim is the restoration of the Reich." Some members would like nothing more than to see the
Sturmabteilung - para-military brown shirts - cracking skulls again. The Nazi anthem is sung at NPD meetings and according to reports the party receives donations from old Nazis in South America.
Many Germans would like to see the party banned, but this could be difficult if past experience is any indication. An attempt in 2003 failed. The case was thrown out when NPD officials called to testify turned out to be informants for the intelligence service.