Justice Minister Hubig still sees “many question marks” regarding the law on socialization

Federal Justice Minister Stefanie Hubig (SPD) has expressed skepticism about the federal government's planned law to make socialization more difficult. "There are still many question marks - and of course the debate is not over. I take the constitutional and political concerns about the project seriously," said the SPD politician to the Kölner Stadt-Anzeiger.

On Sunday, details of a key issues paper that Federal Interior Minister Alexander Dobrindt (CSU) is working on became known. A so-called investment protection law is intended to prevent a possible left-wing new government in Berlin from being able to socialize up to 160,000 apartments as planned.

The key points of the law stipulate, among other things, that socialization of rental apartments should only be possible if an imperative necessity can be proven. A state government would then have to prove that it has fully exhausted all other means, i.e. investments in and support for housing construction, and that it has no other choice. If expropriation takes place, compensation must be paid “immediately in money” and, above all, at the market value, which is determined by an appraisal. This could actually make the plans in Berlin much more difficult.

Bavaria's construction minister speaks of "haunted Berlin"

Bavaria's Construction Minister Christian Bernreiter is putting pressure on a quick decision. “We need security for investors and banks quickly so that construction can start again,” emphasized the CSU politician. Mergers would only be an option if they were absolutely necessary, 100 percent of the sales value would be compensated and the money would flow immediately.

“If these criteria apply, the spook in Berlin will immediately end, because ultimately the federal capital cannot afford this socialist fantasy,” said Bernreiter.

The lobby organization “Wirtschaftsrat der CDU” had also called on the federal government to adopt the plans against corporatization as soon as possible. “The law must be introduced immediately,” said Secretary General Wolfgang Steiger to the Rheinische Post. Dobrindt is taking “exactly the right path” with his proposals for an investment protection law.

Constitutional lawyers have concerns

Constitutional lawyers, however, had expressed concerns about Dobrindt's key points paper. Because socialization is permitted according to the Basic Law.

The chairwoman of the SPD workers' wing, Cansel Kiziltepe, also criticized the interior minister's plans. "With his legally shaky proposal for an anti-corporation law, Alexander Dobrindt shows that the Union puts the interests of large real estate groups above our basic law," Kiziltepe told the AFP news agency. “Instead of respect for a democratic decision, he wants a guaranteed return for the housing industry,” Kiziltepe continued.

Hubig made it clear that she was not fundamentally ignoring the law. If something has been decided in the coalition committee, everyone would be well advised to get involved constructively and work together in a spirit of trust, said Hubig.

The Minister of Justice considers the Berlin route to be unsuitable

In principle, Hubig considers the planned approach by the Left, the Greens and the SPD in Berlin to be unsuitable. She referred to many billions in compensation and years of legal uncertainty. “It would be better to invest the money in building new affordable apartments. We also need to further strengthen our social tenancy law,” she said about possible alternatives.

Left leader Luigi Pantisano had accused Dobrindt and the entire black-red federal government of being more important to them than the tenants of the shareholders of large corporations like Vonovia. The federal SPD now has to decide which side it is on, “on the side of the rental mafia or the tenants,” said Pantisano.

On Saturday, a state party conference of the Left will decide whether there will be coalition negotiations in Berlin. The SPD and the Greens have already agreed.