According to police sources, the attack was carried out at 4.30am when, according to various eye witnesses, a group of between four and five people, all dressed in black, began to poke, kick, hit and verbally abuse the homeless foreigner.
The German, who usually sleeps behind the newspaper kiosk, tried to defend himself but his fight was in vain.
Apparently, some of the gang appeared carrying pots of paint and began dousing him with the paint, in particular his head.
Needless to say, he eventually began to consume the paint and screamed and shouted for help and the toxic liquid provoked a bronchial spasm.
The attack was witnessed by one of the indignados still camped in the square and immediately called the security forces. He spent most of yesterday helping the National Police with their inquiries, trying to provide as clear a description of the attackers as possible.
The Central Government Delegate to the Balearics, Ramon Socias, said yesterday that, based on information received, the police identified and arrested two of the culprits last night - one was a minor. Socias slammed the attack as an act of neo-Nazism and like something out of the film A Clockwork Orange. The investigation continues.