NPD members have joined regular "anti-Islamisation" marches by the right-wing Pegida organisation, based in Dresden.
The
NPD's anti-immigrant stance is part of widespread German anxiety about
the influx of non-EU migrants, many of them Muslim Syrians, Iraqis and
Afghans fleeing war and human rights abuses.
Germany severely restricts the power to ban a political party - a legacy of de-Nazification after World War Two.
Only the Bundesrat, Bundestag (lower house) or government can launch a banning procedure.
And only the constitutional court can impose a ban, if two-thirds of the judges back it.
Critics
of the new case against the NPD fear that a ban could turn far-right
extremists into martyrs. The party has about 5,200 members.
There
are two post-war precedents for such bans in Germany. The West German
authorities banned the Socialist Reich Party in 1952 and the Communist
Party of Germany in 1957.
A banning order forces a party to
completely disband and its assets can be seized, the German broadcaster
Deutsche Welle reports.
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