Anti-immigration parties have seen their popularity rise throughout Europe over recent months, as the euro zone economy has struggled to recover and jobs remain scarce. However, the latest rallies in Germany show that the rise of such parties is not confined to countries with struggling economies.
European countries that are relatively economically prosperous – such as the U.K., Sweden and Germany – have also see the rise of populist anti-immigration, anti-EU parties such as the UK Independence Party (UKIP), the Sweden Democrats and the Alternative for Germany (AfD).
Read MoreEurope gets ready for another Greek drama
Pawel Swidlicki, policy analyst at think tank Open Europe, told CNBC Tuesday that the Pegida movement in Germany was an "interesting development" that was linked to insecurity over the country's economy, which veered dangerously close to recession last year.
"There's a belief that this movement is a proxy for other general concerns such as competition for jobs and economic and cultural insecurity," Swidlicki added.
"We don't know what it's going to do or where it's going, but we're seeing the protests happen all over Germany, although it seems to be focused in the former East Germany, in cities like Dresden."