By Ray Furlong
BBC News, Berlin
State prosecutors in Germany say they cannot take legal action against a far-right party that disrupted a minute's silence for Holocaust victims.
The government has tried to ban the NPD
National Democratic Party officials walked out of the Saxony state assembly after comparing the Holocaust to the World War II allied bombing of Dresden.
The NPD secured 9.2% of the vote in the Saxony state elections last year.
An attempt by the German government to ban the party failed at the country's highest court.
State prosecutors in Dresden said that what they called "questionable statements" by NPD officials had been made during a session of the Saxony state assembly and could therefore not be prosecuted.
The NPD has proved to be adroit at staying just about on the right side of the law, while at the same time acquiring a reputation as Germany's most extreme far-right party.
The German government has compared it to the Nazi party in its early years, but when it tried to ban the NPD the result was an embarrassing failure.
Two years ago, the Supreme Court ruled that the party had been infiltrated by informers working for the German authorities.
This made much of the evidence against the party inadmissible. The NPD was able to argue that incriminating statements were actually not made by party officials, but by the informers, purely with the aim of getting the party outlawed.
Now, the debate has re-emerged about whether it is time to try banning the party again.
But the German Interior Minister, Otto Schily, is being cautious - suggesting instead efforts to restrict its right to assembly as far as possible.