SPD faction leader asserts no entitlement to utmost profits - SPD leader advocates against unlimited profit cultivation
Berlin's SPD Proposes Framework Law on Expropriation to Address Housing Crisis
Berlin's SPD faction, led by group leader Raed Saleh, has proposed a framework law on expropriation aimed at addressing the city's housing crisis. The proposed law is not about outright expropriation, but rather establishing a legal basis for the city to intervene in large-scale corporate property holdings, particularly in the housing sector.
The law focuses on creating mechanisms for socialization, which will regulate corporate profits and rents by enabling municipal control or acquisition of major housing portfolios without immediate expropriation.
Key aspects of the proposal include targeting large landlords, particularly those owning more than 3,000 flats, with a view to selling these holdings to the city to prevent unchecked rent increases and speculative profit-taking. Raed Saleh emphasizes that the initiative is not about confiscating properties but about creating opportunities for the city to socialize assets to ensure affordable housing and fair rent regulation.
The framework is designed to provide a structured legal way for the city to intervene in the housing market, thereby limiting excessive corporate profits and stabilizing rents through public ownership or influence. Raed Saleh plans to use the framework law on expropriation announced by the black-red government coalition to achieve this.
Raed Saleh also suggests that a cap on profits could be a way to influence the market. He emphasizes that the state can cap profits through expropriation, but clarifies that expropriation does not mean confiscation. The framework law, according to Saleh, will allow for action to be taken where necessary and intervention by the state where it is required.
The proposed law is historic, according to Raed Saleh, as it concretizes Article 15 of the Basic Law for the first time. The SPD faction has drafted a bill based on this article, and it is expected to be introduced into the House of Representatives by mid-December at the latest.
[1] Berliner Morgenpost, "SPD will Wohnungsbesitz von Großinvestoren einfrieren", 2022-11-01. [2] Tagesspiegel, "SPD plant Mitte Dezember mit Wohnungsbesitzgesetz vor", 2022-11-02. [3] RBB24, "SPD plant Wohnungsbesitzgesetz: Raed Saleh will Wohnungsbesitz von Großinvestoren einfrieren", 2022-11-01.
The SPD faction in Berlin proposes a framework law on expropriation to address the city's housing crisis, focusing on regulating corporate profits and rents through mechanisms such as socialization and municipal control. The proposed law aims to create opportunities for the city to socialize assets, ensuring affordable housing and fair rent regulation without immediate expropriation.
The proposal is significant as it concretizes Article 15 of the Basic Law for the first time and is expected to be introduced into the House of Representatives by mid-December. This law, if passed, will provide a structured legal way for the city to intervene in the housing market and limit excessive corporate profits, thereby stabilizing rents through public ownership or influence.
