German government challenged over eurozone bailout

Fifty plaintiffs, including some of the country's most significant business figures, argue that the aid package runs contrary to the German constitution.

If their collective injunction is successful it would stop Germany paying more than 20bn euro to Greece and Ireland.

Professor Markus Kerber - the founder of the Europolis campaign group, which has raised the challenge - said: "Our intention is not to wreck the eurozone."

"But we are not very happy about the development that is due to a lack of rule of law within the European community."

The economist added that Germany was not the only eurozone nation that would not want to see its rating compromised by association with other countries with "bad fiscal governance".

But he said he was concerned that the German legal system would be slow to hear the case Europolis was bringing against the bailout plans.

Commenting on the move, Simon Nixon, European editor of the Heard on the Street column in the Wall Street Journal, said the consequences of Germany backing out of the bailouts would be "unthinkable".

"The first think that will happen is that half the governments in Europe will cease to be able to fund their debts.

"The banking system across Europe will collapse, including the German banking system because they've got very large assets around the whole of the eurozone, which would suddenly be worthless.

"It would make Lehman look like a tea party, frankly - which is why I don't think it will happen."

Nixon said that as the consequences would be so huge, it was not a likely scenario, but added that it was an outcome that was being considered by the markets.