Merz to ban housing expropriation after die Linke win Berlin

Federal Chancellor Friedrich Merz has pledged to swiftly enact a national ban on expropriating residential property, following die Linke's electoral triumph in Berlin. The left-wing party's electoral victory, secured on September 20, was driven by a commitment to implementing the results of a 2021 referendum which saw 59.1% of voters support the nationalization of over 240,000 housing units owned by private companies.

However, this plan was never acted upon by the subsequent CDU-SPD state government. With die Linke now holding a renewed mandate, Merz has questioned the financial viability of the expropriation plan, emphasizing the need for legal clarity at the federal level to maintain investor interest in the German property market. Merz stated, "They'll never be able to pay for it all," during a press conference in Berlin.

The chancellor has assured that the federal government will move "relatively quickly" and that the Justice and Interior ministries are already working on a draft ban. Despite some concerns, others argue that the plan is viable, constitutional, and necessary. In 2023, an expert panel appointed by Berlin's former coalition concluded that the purchase would not financially burden the state government, as it would not have to pay the current market price to acquire the over 240,000 flats.

The panel further emphasized that constructing new properties is not a long-term solution to Berlin's housing crisis, and that creating permanent affordable housing for lower-income groups should be the priority rather than attracting private investors.