Germany’s main neo-Nazi party has been ordered to pay a fine of €2.5 million (£2.3 million) for accounting irregularities.

A lawyer for the National Democratic Party warned that the fine could lead to the collapse of the party.

It was imposed by the national government four months after the former NPD treasurer was jailed for stealing €741,000 (£677,000) from the party.

The NPD is a legal political party represented in two of Germany’s 16 state legislatures. NPD officials praised Iran’s President Ahmadinejad when he argued that Israel should be wiped off the map.

Party leader Udo Voigt has said that Hitler’s deputy Rudolf Hess should have won the Nobel Peace Prize.

The threat to the NDP comes a week after neo-Nazi youth group The Homeland-Faithful German Youth (HDJ) was banned for promoting Nazi ideology among children.