The relationship between Syriza party leader and Prime Minister Alexis Tsipras and the EU has gotten off to a rocky start, and markets are responding accordingly.

Greek bond yields plummeted this week as traders rushed into a sell-off and the nation’s share markets fell 9.24 percent on Wednesday.

Greek banks have been the hardest hit, with most losing more than 25 percent of their value.

Possible Downgrade

Adding fuel to the flame was a warning issued by Standard & Poor’s Ratings Services, which put the nation’s sovereign debt on watch for a downgrade.

The firm’s decision came just 48 hours after Tsipras took office and began making good on his campaign promises to reverse the country’s unpopular austerity cuts.

Battle Royale

In the three days since Tsipra’s and his government have taken over at the helm of the Greek economy, he has drawn a hard line against the nation’s creditors by refusing to adhere to Athens’ bailout conditions and speaking out against EU sanctions against Russia.

His actions suggest that he is prepared for a bitter battle against Greece’s creditors, an attitude S&P says is dangerous for the nation’s economic well-being.

Related Link: Greece PM Alexis Tsipras Comes Out Swinging On Second Day In Office

EU Won’t Back Down

Comments from EU policy makers suggest that the bloc is more comfortable letting Greece fail outside the eurozone than making concessions to allow it to stay.

Spain has spearheaded the campaign to allow Greece to leave the eurozone, as the nation says its own radical parties will be encouraged by any leeway given to Syriza.

Germany has also been very vocal about allowing Greece to fail, saying that new election doesn’t change the nation’s dire financial situation and that the conditions of its aid were binding.

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