From Foreign Policy · Paul Hockenos · · 2m
Berlin Left Wins Housing Socialization Push
Berlin’s Left party wins election with housing socialization pledge.
In brief
Berlin’s Left party wins election with housing socialization pledge. Elif Eralp’s Left party won Berlin mayor election with 26% votes to socialize corporate housing, risking legal and financial challenges but aiming to lower rents citywide. Originally reported by Foreign Policy.
Berlin Left Party Wins Election
Elif Eralp’s Left party won Berlin mayor election with 26 percent of votes.
Left Party’s Housing Socialization Promise
Eralp pledged to socialize corporately owned apartment buildings to keep housing affordable.
Legal Basis for Socialization
The German Constitution’s Article 15 permits socializing land, natural resources, and means of production against compensation.
2021 Referendum Supports Socialization
A 2021 citywide referendum showed 59 percent of Berlin voters supported drafting legislation expropriating housing stock from large real-estate companies.
Socialization Targets Major Landlords
Vonovia, Germany’s largest residential real-estate company, owns more than half of the 220,000 apartments targeted for socialization.
Socialization Could Lower Rents Citywide
Socializing housing units might lower rents citywide through a mechanical link in German rent law that caps landlord increases.
Social Democrats Oppose Socialization
Social Democrats warn socialization could exceed 30 billion euros ($34 billion) and strain Berlin’s budget.
Legal Challenges Expected
Expropriated landlords may challenge the use of Article 15, and Chancellor Merz wants to ban socialization nationally.
Socialization Costs and Funding
The Left plans to sell bonds to finance socialization, with compensation payments totaling 13.5 billion euros ($15.3 billion).
Socialization Risks Backlash
Critics argue socialization could undermine Germany’s reputation for liberalism and violate property rights.
Left Party’s Economic Justification
A Macroeconomic Policy Institute report says socialization increases rent-controlled housing and makes Berlin affordable for low- and middle-income earners.
Socialization Could Spread Nationally
German leftists hope Berlin’s experiment spreads to other cities and sectors like electricity and healthcare.
Historical Context of Article 15
Article 15 was inserted by early postwar SPD to allow socialization but has been largely ignored since.
What Happens Next
Berlin’s Left party faces legal challenges and budget constraints but aims to lower rents citywide through housing socialization.
In short
Elif Eralp’s Left party won Berlin mayor election with 26% votes to socialize corporate housing, risking legal and financial challenges but aiming to lower rents citywide.
