The Greek stock market was in free fall Wednesday dropping 9%, partially due to fears of a leftist politician gaining power in the Greek Congress. The fear stems from the belief that he would take a much more hard-line stance against the European Union and against the Austerity measures put into place against Greece when their economy nearly collapsed due to a debt crisis in 2009.
Alexis Tsipras is a former member of Greece’s Communist Party and is the leader of the Greek opposition party Syriza which has steadily been gaining seats in the Greek Congress.
Syriza wants to renege on Greece’s promise to pay back a large portion of the money that it borrowed from other EU nations in order to stabilize its economy in 2009.
Additionally, there is fear that Greek banks may fail EU stress tests as a result of a rising number of bad loans.