Berlin's SPD is planning an expropriation law - the CDU is resisting vehemently!

Berlin's SPD is planning an expropriation law - the CDU is resisting vehemently!

Things are once again simmering in Berlin. The red-red-green coalition has presented a new bill for the socialization of housing and means of production that is heating up people's minds. The World reports that the SPD has presented a proposal to create a “socialization authority” in the Berlin House of Representatives. This authority should be responsible for the socialization of real estate and other means of production. The debate is particularly fueled by the 2021 referendum, in which 59% of voters voted for the socialization of large real estate companies.

A central point of the SPD draft is a concept for expropriation. According to the draft law, the compensation for expropriated owners could be below the market value, which the CDU highly criticizes. Berlin's governing mayor Kai Wegner (CDU) has angrily emphasized that no expropriations will take place under his leadership, as this could harm Berlin, unsettle investors and actually endanger jobs. The general secretary of the Berlin CDU, Ottilie Klein, is anything but enthusiastic about the SPD's plans and accuses it of walking down a dangerous path. According to her, the SPD's intentions are not clear, and a broad CDU front is forming against the draft law, as is the case Daily Mirror determines.

The details of the bill

The draft not only envisages the expropriation of property owners, but also of companies that offer goods and services in Berlin. The “elementary areas of public service” that could be affected include, among others, housing, energy supply, waste disposal and public transport services. The SPD argues that these measures could enable social market regulation and curb exorbitant rents in the capital, which parliamentary group leader Raed Saleh considers absolutely necessary.

However, the implementation of the bill could take until 2026. Saleh himself makes it clear that his group does not want to expropriate anyone, but does not ignore the possibility that expropriations could serve as part of the “tool kit”. The draft law is expected to be introduced in the House of Representatives by mid-December 2023 and, subject to approval, the law could come into force two years after its promulgation at the earliest.

The look forward

The debate over socialization shows how widely differing opinions are on the right path to take in housing policy. While the SPD insists on social justice and regulation of rental prices, the CDU fears for economic stability and the trust of investors in Berlin. The citizens of the capital can only hope that a workable compromise will be found in the end.