"The police, the authorities, no one dares to intervene," Uwe Wandel, mayor of the district that includes the hamlet of Jamel, told Der Spiegel.
Jamel, in Mecklenburg-Western Pomerania, part of the former East Germany, is home to Sven Kruger, a leader of the far-right National Democratic Party. He and his allies have bought up practically the entire village and driven others out, the German magazine reported Monday.
The NPD, which openly glorifies the Third Reich, has held seats in the state Parliament since 2006. A recent rash of attacks against politicians and offices of all the democratic parties has shaken the state.
Norbert Nieszery, Social Democratic leader in the state Parliament, calls it an "early form of terror," and state Interior Minister Lorenz Caffier, a Christian Democrat, sees a "new level" of right-wing violence. He believes the NPD is trying to raise its profile through belligerence before elections in September.
Horst Lohmeyer, one of the few residents to oppose the extremists, said, "They see Jamel as a 'nationally liberated zone'" -- meaning a places foreigners and anti-fascists must fear to tread.