Bond and equity markets do not react well to overt signs of fiscal populism. Case in point: Italy.
Italian 10 Year Government Bonds
The Italian government submitted its 2019 budget plan to the EU calling for a large deficit, unacceptable to the Commission. A spat has ensued, causing bond yields to rise sharply.
Unlike the Greek "tragedy" of the last 10 (!) years, Italy is a very, very large economy and cannot the pushed aside and/or be blackmailed into submission. A dogfight will eventually lead to tearing apart the entire EU structure, so an easing of the "German" fiscal probity model is likely in the cards, also given that Mrs. Merkel is now weaker than ever politically.