I'm British, and I've lived between Holland, Italy and France for a few years. I don't think it's really true that the British are more racist or narcissistic. I think they are more fake, and more arrogant. I think the racism is really a reflection of the British
newspapers than the people.
A thing that British people forget is that our country is the only in Europe where there are no ID cards (yet). In Italy, Holland and France people think it's strange when I tell them that it's not only that you don't have to carry an ID with you in Britain, but that it's not even compulsory to own an ID (passports, driving licenses, etc. are all optional). Furthermore, you are not required to register your address in Britain, like you are in, for example, Austria, Italy, and Holland. In Britain, the state doesn't know for sure how many people there are, and where they all live because there is no national database. They have the voting register, NHS database, DVLA database, whatever the Inland Revenue has, and the census, but it's a mess and they don't really care.
In comparison, when I moved from Holland to France recently, we had to de-register (in Holland), and we took great care to say that we were travelling (not true) and we gave no address. We didn't even give the country. But they found out anyway, because they sent us letters and stuff, even though we didn't have to register in France. The Dutch state is extremely efficient, data is shared widely and easily between state organizations. It's vaguely fascist. The British system, in comparison, is chaotic.
In my opinion, the British don't appreciate how liberal their state is.