Europe indeed has some problems with immigration but I wouldn't call European nations "racist" because of a minority of right-wing activists. Just some weeks ago there was a big Nazi demonstration in Dresden (Germany) with Nationalists from several European countries "remembering" the attack of the allied powers against Dresden during the second world war. I'm sure some Europeans have read about it. What a lot of people I asked didn't know was that even more people demonstrated against racism at the same day and the Nazi's didn't get a chance to demonstrate because of that.
The main point here is that a lot of people are scared of muslim immigrants because they are "different" (which is why Switzerland banned minarets, although a lot of people regret that now). On the other hand there are a lot of very well integrated and even famous muslim. The leader of the Green Part in Germany, Cem Özdemir, is from Turkey for instance. And the Greens are currently polling above 15% which is insanley high for them so people don't seem to mind about that.
Maybe it has to do with Europeans still being in the process of accepting their "European identity" (I'm talking about mainland-Europe here. I know the UK is some sort of special case ) before they can adapt to even more change? You know this process still needs some time when you see left-wing voters being sceptical of more european integration while the right-wing extremists unite against inmmigration from muslim countries. We are pretty much in some sort of transition right now.