Constitutional law: What the Basic Law has to say about socialization
The next Berlin state government could take thousands of apartments away from large corporations. The federal government wants to counter this with a law. Both are controversial in terms of constitutional law. An overview.
The debate over socialization of apartments in Berlin has intensified with the likely formation of a left-green-red state government. The federal government plans to introduce an investment protection law to make Berlin's plans more difficult. The socialization of apartments is disputed under the German constitution, specifically Article 15, which allows for the transfer of property to common ownership or other forms of common economy, but its interpretation is contested.
A law professor, Thorsten Schmidt, argues that any socialization law would need to meet the principle of proportionality and serve a legitimate purpose, and that milder measures could achieve affordable housing. The Berlin state constitution also protects property rights, which may take precedence over federal law. A 2023 expert commission appointed by the Berlin Senate found that socialization of large housing companies in Berlin is generally permissible, but only with adequate compensation for affected companies.
The federal government plans to make it harder for states to socialize companies, requiring them to prove that all other means have been exhausted.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
Also reported by 1 other outlet
- Legal Check: What the Basic Law says about Berlin's socialization handelsblatt.com
