“You don't experiment with that”: Merz and CSU oppose Berlin expropriation plans
Chancellor Merz warns Berlin's planned left-wing alliance against socialising large housing stocks. CSU general secretary Huber calls the plans a “ride through Absurdistan”.
Archive image · Photo: Dati Bendo / European Union, 2025 / EC - Audiovisual Service / Wikimedia Commons, CC BY 4.0 (cropped and resized)
Chancellor Friedrich Merz (CDU) has sharply criticised plans by the Left Party, the Greens and the SPD in Berlin to socialise large housing portfolios. Closing the investment summit in Berlin, he said protecting property and trust in a functioning market were deeply rooted in his economic convictions: “That is the foundation of our market economic order, and you don't experiment with that.” Economy Minister Katherina Reiche (CDU) said: “Expropriations are out of the question for us.”
According to the exploratory paper, the three parties want to transfer private housing companies owning at least 10,000 flats in Berlin into public ownership against compensation. According to the dts news agency, the compensation budget is to be capped at 16 billion euros and financed with loans repaid from rental income. The average starting rent of transferred flats is not to exceed the average rent under the previous owner. According to dpa, the scope, financing and timetable remain open until a law is drafted; the compensation procedure and the new ownership structure would also have to be settled.
The CSU also rejects the plans. General secretary Martin Huber told the news portal t-online it was a “ride through Absurdistan” and warned: “The tenants will foot the bill.” In Berlin, the SPD state executive and a Greens party conference have already approved coalition talks with the Left Party. The Left itself will decide at a party conference on 31 October; negotiations could then begin in early November.