The city of Nuremberg where they have the Christmas market. They have this all over Germany but this is the most famous one. The market in Dresden is the oldest. More below:

"Every year, Germany's most famous Christmas Market opens its stalls for visitors from all over the world, right in the middle of the city, on Nuremberg Main Market Square. At 5.30 p.m. on the Friday before the first Advent Sunday, the Christmas Angel opens her market, reciting the solemn prologue from the gallery of the church of Our Lady. And as every year, by Christmas Eve, more than two million visitors from all over the world will have sampled the delights of the Christmas Market.

About 180 wooden stalls, festooned with red-and-white cloth, have given the Christmas Market its name of "Little Town from Wood and Cloth". 200 stall holders present their traditional wares: Nuremberg spicy gingerbread, fruit loaves, bakery goods and sweets, typical Christmas articles such as Christmas tree angels, cribs, Christmas tree ornaments and candles, toys as well as arts and crafts products. Favourite souvenirs include "Nuremberg Plum People", little figures made from prunes. And of course, by way of refreshments, there are always rolls with Nuremberg roast sausages and mugs of mulled wine.

The staff of the Market Department keep a watchful eye on the stalls and the goods on offer. So plastic fir garlands are a definite no-no, just as much as non-stop taped Christmas muzak or carousels. The market's stall holders also compete for the most beautiful and tasteful stall design. And reap their rewards: since 1981, the City has presented an annual award of gold, silver and bronze "Plum People" for the most beautiful stalls."  – Nuremberg Press and Information Office