Rather than addressing a hypothetical, lets examine a case with verifiable facts, where the terms racist and fascist seem misleading or at best ambiguous.
Ghettolisten 2017 - measuring segregation
The Danish Ministry of Transport, Building and Housing has published a list called Ghettolisten. As a nation, Denmark seems unique in it's frankness about segregation, but that alone doesn't imply intent to segregate.
The very fact a government has chooses to name this a list of ghettos indicates recognition of a severe problem the word has generally been associated with: the isolation of minorities because of social, legal, or economic pressure. Read in context, seems a clear recognition that if public policy leads to a vicious cycle of unemployment, isolation, and crime, a government has a duty to address it.
Machine translation of the 2017 list says "Ghetto list includes social housing areas with at least 1,000 residents who meet at least 3 of the 5 criteria."
Note: differences between machine translation services can make a difference in English version of Danish statements. Human interpretation of the context and photos in the Danish sources make fairly clear that the term ghetto refers what in American English would be called large-scale public housing blocks or the more jocular term the projects. All translations quoted in this answer are from Bing translate. Google translate uses the words "general housing" rather than "social housing", which may explain some confusion.
It seems the designation ghetto does not apply general neighborhoods or smaller-scale (distributed) public housing, just to the really big complexes. It seems the problem being addressed is the statistically demonstrable correlation between large public housing projects resulting in concentrated differences of culture and crime. The housing minister's quote frames the problem:
"The Government wants to boost efforts to reduce the number of ghetto areas. We need to have some more effective tools to change the resident mix. We will prioritize when there next year to be awarded a new agreement about nation-building."
Public Housing and the native-flight-from-immigrants hypothesis
In the US over the last century, something called white flight lead to high statistical correlation between large-scale inner-city public housing, race and violent crime. Federal courts recognizing this developed a plan of desegregation bussing which was both divisive and ineffective at addressing the root cause of the problem. More recently US housing authorities have more directly addressed the theory linking large scale public housing with poverty by seeking to eliminate (demolish) problematic projects. Studies in the US of the effectiveness of this are as of yet inconclusive. But of course, these actions were subject to claims of being racist in US courts.
Denmark chose to study this effect domestically, and found in Copenhagen evidence that areas of elevated immigrant percentage in schools supports the native-flight-from-immigrants hypothesis and suggest that segregation is increased by "Danes’ and immigrants’ differing behavior."
The government seems to have taken this finding to heart in establishing the criteria for vulnerable "ghettos" in areas with over 1,000 residents of public housing. One of the five criteria is:
2. The proportion of immigrants and descendants from non-Western countries exceeding 50 per cent.
Remember, an area meeting just one or two of the criteria does not qualify, nor does the national origin of specific criminal or victim. Other criteria for concern include radiometric (numerical) measures of unemployment, criminal convictions, education level, and income. It makes none of these a crime, but there is a very credible argument that those living in these areas are very much at risk of crime and discrimination.
Problem solving vs. provocative name calling
Asking if efforts to reduce crime against residents of public housing are fascist or racist is unproductive, it amounts to little more than childish name calling. Let's look at the bigger picture.
The Danish government has recognized the problem and has set a goal to eliminate "ghettos" in 10 years by 2020. This is nothing like fascist policies that move people into ghettos based on race (or any other protected characteristic.) The terms racist and fascist are misleading, and debating the words connotation and denotation is irrelevant. Those labels have historically been applied to people who seek to establish and defend the isolation of minorities.
If the Danes succeed using more subtle methods than bussing or demolition, the US might learn a thing or two. There seems to be no evidence that Denmark is deporting significant numbers of people to achieve their goal. None the less, some people ( probably some on both sides of the issue) feel the government's message is "Go home!" That's an understandable emotional reaction, but not demonstrably true.
If the crimes to be punished are crimes of opportunity or hate against immigrants and/or others in concentrated poverty, it seems equally possible to interpret as "we see a structural problem and we are trying to fix it."
A more relevant question
A more relevant question becomes: Does [specific effort] serve to reduce racial segregation, bias and discrimination? At least in the case of Ghettolisten, it seems the intention is good, and it at least may help thru reducing crime. To say more definitively requires empirical analysis, not opinion.
Interpreting the effect of efforts to resolve the problem requires measurement not debate. For example, what happens to the number of convictions in and number of areas qualified as ghettos. For example, Ghettolisten 2017 notes progress, but not satisfaction with the current result. Analysts looking at multi-year trands say that The decline in the number of areas in the list is primarily due to decreasing crime., and the political conclusion drawn is:
It is of course positive that there are fewer areas on ghetto list this year. We should be pleased about that. But there are still too many and it goes too slow to reduce the number. We have particular problems with the physically isolated ghettos, there are secluded from the surrounding town.