Dobrindt Pushes to Make Socialisation of Berlin Housing Companies Significantly Harder

Following the Left Party's election win in Berlin, the three prospective coalition partners — the Left, the Greens and the SPD — have completed exploratory talks and produced a sounding paper intended as the foundation for formal coalition negotiations. Those talks twice came close to breaking down, partly because of controversy surrounding the Left MP Vanessa Emde. Questions remain about who will ultimately govern the capital.

At the heart of the dispute are the coalition's plans to socialise large Berlin housing companies. CSU politician Alexander Dobrindt is pushing for legislation that would significantly raise the legal barriers to any such move. An open letter signed by 227 prominent figures has been published in opposition to this proposed blocking law. Five companies are currently in scope for socialisation. Banks have warned that the plans could drive up the cost of property loans, while a majority of Germans are said to oppose a red-green-red government.

The Left Party has also suffered a legal setback, losing a court case in Stuttgart against Interior Minister Hagel. The CSU, meanwhile, has continued to attack the socialisation proposals and has been inviting real estate companies to meetings on the issue.