The Economist has a nice article on immigration in Germany. If you can recall, Angela Merkel recently said that multiculturalism has utterly failed in Germany. This was following the furore that was raised by the publication of a book that claimed that immigrants and muslims were causing the downfall of Germany. The book was written by Thilo Sarazzin, a member of the board of the German Bundesbank. He was subsequently forced off the board of the Bundesbank. (See the Economist article for a recap of the main issues.)
What some of the people I have spoken with are scared of is that this might yet become a major political issue, leading, for instance to the creation of an acceptable right wing party. (There are the crazies, like NPD, the neo-Nazi party, but nobody really takes them seriously.) The fear is that if Ms Merkel is unable to contain the discussions surrounding immigration within her party, it is possible that some members might decide to go with the general sentiment of anti-immigration and form a political party that retains the basic economic policies of the right of centre CDU, but adds to it anti-immigration rhetorics and policies. A party like that, I am afraid, will be appealing to certain segments of the German middle-class.