German Foreign Minister Frank-Walter Steinmeier has condemned the arson attack that burned down a new refugee shelter in the eastern town of Troeglitz.

Steinmeier told Welt am Sonntag, a German newspaper, on Sunday that "the events in Troeglitz are a disgrace" to Germany and may affect the country's reputation.

"Even though we cannot solve the hardship of refugees, we must help abate the consequences," he added.

The arson attack in Troeglitz last Saturday followed weeks-long protests by far-right demonstrators who opposed plans to house some 40 asylum seekers in the town, beginning from May.

"We shouldn't be surprised that it's registered with great concern, also with our partners in the world when refugee accommodation in Germany is burning, and that how German society reacts is closely followed," Steinmeier said.

Far-right demonstrators and followers of the National Democratic Party of Germany, or NPD, carried out protests in the small eastern town of Troeglitz to block plans for housing asylum seekers in the town.

These events made Markus Nierth, Mayor of Troeglitz resign following threats from far-right protesters.

The majority of the asylum seekers and their families are accommodated in refugee centers or public houses managed by the municipalities and communities but often need more support from the federal government.

There were 144 attacks against the houses and camps of refugees in 2014, according to the anti-Nazi Amadeu Antonio Foundation and at least 68 asylum seekers were targeted with physical violence.

Wars in Syria and Iraq, as well as other armed conflicts, have significantly increased the number of asylum applications to European countries including Germany.

Germany received 202 thousand 884 asylum applications last year, an increase of 60 percent compared with the same period in 2013, according to the German Interior Ministry. Forty-seven thousand of them were Syrians.

Related: Arson in German town of Troeglitz shows anti-immigrant mood running high