Cabinet ministers warned on Tuesday that right-wing radicalism and xenophobia are on the rise in Germany after the anti-Islam PEGIDA movement held its biggest rally in months, spurred on by the arrival of hundreds of thousands of migrants.

Emboldened by popular fears about the refugee crisis, some 15-20,000 people joined the Monday evening rally in Dresden by Patriotic Europeans Against the Islamisation of the West (PEGIDA). Many waved German flags and chanted "Out! Out!"

The leader of the Social Democrats (SPD), who share power with Chancellor Angela Merkel's conservatives, told the Sueddeutsche daily that PEGIDA was a "right-wing populist and in part openly radical right-wing movement".

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