Berlin Before the Election: SPD and CDU Clash Over Possible Expropriation of Large Housing Corporations

The SPD has aligned itself behind the cause of the referendum and considers expropriation a legitimate instrument of housing policy. Critics, however, accuse the party of underestimating the legal and economic risks of such a measure. Within its own coalition and in the city council, the issue has already been contested several times, without a definitive political solution having been reached so far.

Background: The Referendum on Deutsche Wohnen & Co.

The CDU has reacted with sharp criticism to the initiatives. The new CDU lead candidate Stefan Evers, who wants to succeed Wegner at the Rotes Rathaus, is also firmly opposed: "Der populistische Ruf nach Massenenteignungen führt nur dazu, dass das Problem immer größer wird." Bavaria's Minister-President Markus Söder (CSU) has even criticized considerations of expropriations as a crazy idea and pure socialism. The Union warns of a loss of confidence in Berlin as a business location and points to unaffordable consequences for taxpayers.

The CDU's oppositional stance comes, perhaps not coincidentally, at a time when polls give the party lower chances than the SPD. The internal party pressure to show a clear profile is palpable. The debate is also being conducted intensively within the district associations, as many officeholders in neighborhoods with particularly tight housing markets are facing political demands.

Criticism from the CDU and Business

Warning voices are also coming from the business community. According to reports, the financial sector has warned of immeasurable burdens and possibly rising loan interest rates as consequences of a potential expropriation. In addition, years of legal disputes at multiple levels are to be expected, which could significantly delay the project. The UVB, the association representing the interests of the real estate industry, emphasizes that investment decisions must be based on reliable framework conditions.

Warnings from the Financial Sector

On the other side, the initiative behind the referendum points to the narrow result of the vote and, in its view, the clearly expressed will of the people of Berlin. Alexander Schirp, one of the initiative's spokespersons, had emphasized in the past that socialization was democratically legitimized and constitutionally possible. The initiative accuses the state government of implementing the referendum only half-heartedly and demands swift legislative steps.

Arguments of the Supporters

The legal situation remains complex. Following the referendum, the Berlin Senate had initiated a draft law intended to regulate the socialization of large holdings. According to experts, implementation could take years, however, since fundamental rights of owners and European law issues are affected. A final court decision is pending.

For the upcoming election, this means: the issue of housing and expropriation will remain one of the central points of contention. The SPD is trying to position itself as the party of tenants, while the CDU is campaigning for votes with reference to economic reason and the rule of law. Both sides know that the question will decide not only symbolically, but also very concretely, the direction of Berlin's future housing policy.