socialization | Merz: Anti-expropriation law is almost finished

Chancellor Friedrich Merz (CDU) speaks at the economic policy breakfast of the Berlin Chamber of Industry and Commerce. Photo: Sebastian Gollnow/dpa Berlin. According to Chancellor Friedrich Merz, the federal government's work on banning the expropriation of housing companies is making good progress. “The draft law is ready,” said the CDU politician at an event organized by the Chamber of Commerce and Industry in Berlin. The only thing that still needs to be clarified is whether – if there is an expropriation – 100 or 80 percent of the market value would have to be replaced. “I don’t think I need to explain that we are 100 percent market value.”

Merz reiterated his criticism of the plans for a possible government coalition in Berlin made up of the Left, the Greens and the SPD. "If there is open talk about expropriations in Germany, in our country's capital, then it has an impact on the capital markets in London, Paris and New York." The protection of property is one of the basic principles of our economic system. “Only those who reliably protect property can maintain trust, and without trust there are no investments.” Socialization does not create a job or an apartment. Instead, the business location is being massively damaged.

"It is completely clear that the Chancellor is 100 percent a corporate lobbyist."

“With Merz’s Law, not a single new apartment will be built, no tenant will be relieved of their fear of a rent increase and no real estate company will be put in their place when rents are exorbitant,” criticizes Sören Pellman in a press release. The parliamentary group leader of the Left in the Bundestag further explains that the only result of this emergency law is that every cent of potential return of the large real estate companies, which is achieved through rental income, will be protected. "It is completely clear that the Chancellor is 100 percent a corporate lobbyist."

During the explorations into a possible coalition in Berlin, the Left, the Greens and the SPD agreed that the holdings of large housing companies of over 10,000 apartments should be socialized. In doing so, they are weakening the demand of the referendum “Expropriate Deutsche Wohnen & Co” (DWE), which was passed by the Berlin population with a large majority in 2021. DWE demands that stocks of over 3,000 apartments per company should be socialized.

A commission of experts appointed after the referendum and made up of renowned constitutional lawyers came to the conclusion that compensation below the market value of the property is legally possible.

There are great doubts as to whether the federal government's intended ban on socialization can be brought into line with the Basic Law. According to the constitution, “land, natural resources and means of production” can be transferred by the states “into common property or other forms of public economy for the purpose of socialization.” According to critics of the plans, a pure blocking law, as intended by the federal government, contradicts the established case law of the Federal Constitutional Court. dpa/nd

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