Ukraine in focus at Berlin Security Conference
A bill that aims to prevent the Left Party from putting large private housing companies into public ownership in Berlin if it comes to power is making progress, Chancellor Friedrich Merz said on Tuesday.
“The bill is finished,” Merz, the leader of the conservative Christian Democrats (CDU),said at an event organized by the Berlin Chamber of Industry and Commerce.
He said the only open question was whether 100% or 80% of the market value had to be compensated.
“I don’t think I need to spell out that we favor 100% market value,” he said.
His remarks come as the socialist Left Party, which emerged as strongest force in state elections in Berlin in September, is holding coalition talks with the Greens and center-left Social Democrats (SPD).
Move to reduce cost of rentals
An exploratory paper issued by the three parties includes plan to expropriate private housing companies with holdings of at least 10,000 apartments in Berlin, with some compensation also planned, though critics say it is too little.
The Left Party argues that offering the then state-owned apartments at lower rents would have a knock-on effect, reducing prices across Berlin.
Merz, for his part, said that such an expropriation in the German capital would have negative “repercussions as far as the capital markets in London, Paris and New York,” saying that protecting property was a basic principle underpinning the economic order.
He said seizing companies in this way would severely damage the business environment, while failing to create jobs or housing.
However, it is in doubt whether the federal government can legally ban the planned expropriation, with Justice Minister Stefanie Hubig from the SPD among those expressing doubts about a general prohibition.
