Germany’s interior minister Dobrindt plans to make housing socialization more difficult — Der Spiegel
German Federal Interior Minister Alexander Dobrindt plans to tighten the legal conditions for the socialization of large private housing portfolios being considered in Berlin. Der Spiegel reports.
Under the minister’s plan, a future investment protection law is to stipulate that the socialization of rental housing will be possible only if an urgent necessity is proven. The authorities of the federal state will have to confirm that they have fully exhausted other instruments, including investments in housing construction and support for it.
Compensation requirements
If housing is nevertheless expropriated, compensation is proposed to be paid directly in cash and at market value established through an expert assessment. Dobrindt’s ministry confirmed the details of the planned law.
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In Berlin, the Left Party, the Greens and the Social Democratic Party plan to socialize large private housing portfolios of companies that own at least 10,000 apartments in the city. According to their document following the negotiations, they want to limit compensation costs to €16 billion. The publication notes that this amount may be lower than the market value of the apartments.
Parties’ reactions and legal assessment
Left Party spokeswoman for rent and housing policy Caren Lay said that socialization is provided for by Germany’s Basic Law and therefore cannot be abolished by legislation. Left Party leader Luigi Pantisano also expressed confidence that Dobrindt’s initiative would not withstand scrutiny by the Federal Constitutional Court.
Günter Krings, deputy chairman of the CDU/CSU parliamentary group in the Bundestag, supported the minister’s proposals. At the same time, constitutional law expert Ulrich Battis called the requirement to set compensation specifically at market value risky, as constitutional law leaves room for determining its amount. He considers the other provisions of the draft to be feasible, although federal regulation would limit the powers of the states.
