My understanding is that when, before the introduction of the EUR in the 1990s, there was a constitutional challenge to the EUR in the German constitutional court in Karlsruhe, the judgement only passed by minority decision with some riders attached. One of the most important riders was that none of the members of the single currency could expect help from other members and if this happened then the court judgement could be re-visited. I know that the EU President was quick to say that this aid package will only happen when market financing fails but I suspect that a fresh challenge might soon emerge in Karlsruhe. This would spell disaster for the EUR, no matter what the outcome.
I think this is why the market is having trouble bouncing. Nobody wants to buy.
