Crimes by right-wing extremists jumped 16 percent to 20,422 last year, according to the yearly report published by Germany's Interior Ministry. It also concluded there were nearly 900 reports of injuries caused by right-wing violence in 2008, while the number of neo-Nazis rose to about 4,800.

"The number of neo-Nazis, and this is alarming, has risen again," Interior Minister Wolfgang Schaeuble announced during a press conference held to coincide with the report's release.

Violent incidents were the highest in eastern Germany, when population differences were taken into account. A separate survey carried out by the Friedrich Ebert Institute last year found that one in three people in former East Germany are openly prejudiced against foreigners.

Far-right party losing members

The rise in neo-Nazis stood in contrast to a decrease in interest in the NPD, which has 7,000 members. Part of that drop could be explained by internal squabbles and financial problems that have plagued the party recently.

Yet some experts worry that while the NPD may be facing a financial crisis internally, the global financial crisis may be boosting support for the far right. There are fears that voters heading to the polls soon for various state elections will turn to the NPD if unemployment soars as a result of economic turmoil.

Politicians failed in a bid to have the country's Constitutional Court ban the party in 2003.

Terrorism remains a concern

Besides far-right extremism, the report found terrorism poses the other main threat to German security. Germany has become a target for Islamist terrorists due to its military involvement in Afghanistan.

Terrorists are a "real danger for security in Germany," the conservative minister said.

According to the report, there are 29 active "Islamist groups" in Germany with 34,700 members. It warns these groups are potential recruiting grounds for violent extremists.

th/dpa/AP
Editor: Nick Amies