There is racism in Milan just like in any other city but usually it's not directed at EU nationals. It's mainly directed at people from third world countries (basically everything south of the Po and east of Trieste)

On a serious note, I was born and raised in Milan and I have to wonder what kind of drugs you're on if you think Milan, the most cosmopolitan city in Italy, is racist by Italian standards. I'm the furthest thing from a Milan worshipper but that just makes no sense, there are more Neapolitans here than in Naples and you'll have a hard time finding someone who doesn't have at least 1 grandparent from the South. True Milanese people are few and far between nowadays.

I'm curious, what happened to you in Milan?