Accounting Issue

The party failed to correctly list its assets and funding it received from the state in its 2007 statement of accounts, an official announcement said.

According to the rules governing Germany's political parties, the fine is double the amount of the erroneous declaration.

The total sum involved is 2.5 million euros, but the NPD has made an advance payment of 304,000 euros.

It was ordered to pay the remainder by May 1. The NPD has already brought a countersuit against the German government. A decision is expected this Friday.

'Threat to constitutional order'

Political parties in Germany receive funding from the state to cover their election expenses, provided they receive a certain number of votes.

The anti-foreigner NPD is not represented in the federal parliament in Berlin but has seats in two of Germany's 16 state parliaments.

The party has been classed as "a threat to constitutional order" by Germany's domestic intelligence service.

An attempt to ban the party was thrown out by the country's constitutional court in 2003.