Should large real estate companies in the German capital be expropriated?

The question could have blown up the red-green-red coalition negotiations in Berlin.

Because the SPD under Franziska Giffey is against expropriations, the top candidate had spoken of a “red line” in the election campaign.

The Left Party, on the other hand, is determined to push through the socialization - it had led a rent election campaign.

After talks that the participants described as "very tough", the partners agreed on a compromise on Tuesday night.

Markus Wehner

Political correspondent in Berlin.

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They had already agreed beforehand that a commission of experts would be set up first.

It should examine the "possibilities, ways and prerequisites for implementing the referendum".

After a year, the commission should make recommendations.

So it was in the exploratory paper of the three parties.

But now it was a question of what exactly the result of this test should be.

The left wanted to enforce that the commission should draft an expropriation law, or at least lay down the cornerstones for such a law.

The SPD, on the other hand, which is closely linked to the housing industry in the capital, wanted to leave it at an open-ended examination.

Commission will not draft a law

The compromise is that the problem will be postponed - but with more binding rules than before. In the first hundred days, the new Senate is to convene the expert commission. In a first step, it should name and evaluate legally secure steps in socialization. Other aspects, such as the financing of the compensation payments, are to be included in a second step and recommendations for the Senate are then drawn up. He then has to decide on possible constitutionally compliant ways of expropriation.

The key points for a possible expropriation law would have to be submitted by the responsible Senate administrations “if necessary” by 2023, the Senate then has the final word. An expropriation remains possible, but the commission will not draft a law. Who will sit on the commission and how many members it will have is still unclear, as Giffey said on Tuesday. It is also unclear how the initiators of the referendum should be involved.

The future opposition in the House of Representatives and the initiators of the referendum criticized the compromise - albeit with the opposite tenor.

The "sword of Damocles of expropriations" is damaging the construction industry and frightening off interested parties when settling in Berlin, said the CDU parliamentary group leader Kai Wegner.

It is incomprehensible that the SPD "signs a paper aimed at expropriations that it cannot possibly support," said FDP parliamentary group leader Sebastian Czaja.

The coalition break in one year is "already created".

Proponents of expropriation speak of “delaying tactics

The alliance "Expropriate Deutsche Wohnen & Co.", however, spoke of a "transparent delaying tactic" that is unacceptable. "We need a commission that puts a socialization law on the table - and quickly," said the initiative's spokesman, Moheb Shafaqyar. In September around 56 percent of Berliners voted for the referendum. Thereafter, more than 240,000 apartments are to be transferred to an institution under public law. Private real estate companies with more than 3000 apartments in Berlin would be affected.

The Senate's goal is to build 20,000 apartments per year, with 200,000 to be built by 2030.

This is to be achieved by an alliance for new residential construction, for which private companies are to be won.

The development of the Tempelhofer Feld will be "not touched" in this legislative period, said the green top candidate Bettina Jarasch on Tuesday.

The SPD had called for development on the edge of the area at the former Tempelhof Airport.