- More speed on the socialization law?
Berlin's SPD faction leader Raed Saleh is pushing for more speed in developing the planned expropriation framework law. The state needs a legal means to intervene in the housing market to regulate prices, Saleh told the German Press Agency. Recent announcements by Vonovia and other companies of rent increases of up to 15 percent once again highlight the urgency of this issue. The Left and Greens have criticized the SPD politician, saying his stance lacks credibility.
Senate should present a timeline for new law
"Now we're seeing rent increases being announced by various big players in Berlin," Saleh said. "I don't think the state can just stand by and do nothing if it wants to take itself seriously and ultimately be taken seriously by the people of Berlin." The state must ensure the rights of tenants are protected by intervening to regulate prices. Since the federal legislature has not yet made any arrangements for this, it needs to be clarified in Berlin what instruments can be used.
"Therefore, I expect the Senate to now show us a timeline for when a corresponding bill will be drafted," Saleh said. "If there is no proposal, we will still present a draft bill to our coalition partner during this legislative period."
Criticism from Greens and Left
However, Saleh's proposal has faced sharp criticism: Green MP Katrin Schmidberger accused the SPD of having acted as a brake on all attempts to break out of the rent spiral in recent years. The SPD's record on seriously implementing more tenant protection is "more than meager," not to mention the topic of expropriation.
Niklas Schenker of the Left called Saleh's remarks "downright cynical and unconvincing," given that the SPD had blocked the implementation of the citizens' decision for three years. If there is a genuine change of mind among the Social Democrats, the Left's MPs would be the first to vote for an expropriation law in the state parliament.
Achim Lindemann of the initiative "Deutsche Wohnen & Co enteignen" told the "taz": "It's nice that Raed Saleh has woken up and noticed that rents are rising." However, his demand is neither sufficient nor effective. "Instead of a pointless framework law, a real expropriation law should be written."
Recently, it was revealed that Vonovia, the largest private landlord in Berlin, has sent thousands of rent increases. The company is exploiting the legal possibility of increasing rents by 15 percent within three years. However, the newly formed Berlin Housing Alliance, which includes representatives from politics, housing companies like Vonovia, and associations, agreed on a so-called cap of 11 percent over three years.
"I view this development with great concern because Berlin is a city of tenants," Saleh said, referring to the rent increases. "We have a larger proportion of tenants in Berlin than in other federal states."
The project is included in the coalition agreement
CDU and SPD agreed in their coalition contract to introduce a framework law for socialization. This law would set the parameters for potential state interventions in the field of public services, including housing, as well as areas like energy, water, and healthcare. The proposed law is a consequence of the successful referendum in 2021 for the expropriation of large housing corporations.
Saleh stated that the framework law for socialization does not necessarily mean expropriations, but rather the state's intervention possibilities based on the regulations in the Basic Law. The Basic Law guarantees the protection of property, but it also stipulates that property entails responsibilities. If these responsibilities are not met, the state has the duty to intervene in a social market economy. There is no legally established right to unlimited profit maximization.
"Given the ongoing rent increases in Berlin, I believe the Senate should prioritize presenting a timeline for the drafting of the proposed expropriation framework law," Saleh suggested. "The community's voice, particularly the concerns of tenants, needs to be heard and addressed, and the state has a responsibility to intervene if necessary."
