The 400-page report commissioned by the interior ministry concludes at least one-third of Muslims in Germany have experienced hostility because of their religion."

That's not racism. Racism is discrimination against someone because of their ethnicity, not their religion. You may think that nit-picky, but it is important to distinguish between the two.

The accepting of refugees from predominantly-Muslim countries who were at war with each other over the past decade has created a culture-clash. Some of those refugees are offended by socially liberal Europeans. European women aren't "modest enough", they can be men's bosses, the people in general are not religious (60-80% in most members of the EU), etc. Meanwhile, Europeans don't like how Muslims treat women, etc. Compound that with Muslim ghettos forming (I'm specifically aware of one in Paris), and there is a potential for conflict. I applaud them for taking in the refugees, but it was predictable that there would be pain in assimilating into a radically different society. It's a complex topic with lots of moving parts, including language, education, and culture. And, yes, there may even be some racism in there. Probably is. But "Muslim" isn't a race.