Germany’s Free Democratic Party (FDP) labels itself “liberal” in the classic, Adam Smith sense of the word – that the invisible hand of economic forces should rule with as little interference from government as possible. But for at least one big institutional investor, they may be a bit too liberal.
The FDP’s failing? It wants to take the European Union treaties at their word and prevent Germany and other members from bailing out Greece or any other southern European country that runs into trouble.
The German capital market strategist for BlackRock, the world’s biggest asset management firm, sees this as a problem if the FDP wins enough votes in this month’s election to become the coalition partner of choice for Chancellor Angela Merkel’s Christian Democrats.