Far-right protests against the planned asylum hostel were thought to have peaked last month, after the village mayor, Markus Nierth, stepped down in the wake of threats by the neo-Nazi National Democratic Party (NPD) to stage protest rallies in front of the 46-year-old mayor's home.
On Saturday, however, shocked Troglitz residents awoke to find the roof of the new - and as yet empty - refugee hostel had been destroyed by fire. Officials said one or more people broke in and started the blaze at 2am. "Everything in this case points to deliberate arson," said Germany's Interior Minister, Thomas de Maiziere.
The NPD remains legal in Germany despite government attempts to ban the organisation and has seats in two state parliaments in east Germany. It stands accused of deliberately bussing in its adherents to Troglitz to foment unrest.
Mr Nierth, who resigned to draw attention to the fact that he had not been given sufficient police protection and felt his family was threatened, insisted: "We can't let the Nazis win in our town." He said he was shattered by the apparent arson attack: "I am stunned, sad and furious at the same time, Troglitz will never recover from this."
After his resignation, the hostel was overseen by Mr Ulrich, MP in the Saxony Anhalt state government, who received threats to behead him after insisting, despite the fire, the project would go ahead.
- Independent