The economist Tom Krebs calls for the socialization of the energy infrastructure in Germany and also supports the basic idea of the Berlin initiative “Expropriate Deutsche Wohnen & Co.”.
In an interview with the Berlin "Tagesspiegel", the economics professor at the University of Mannheim advocates significantly greater government intervention in the economy: "I want more public responsibility in certain areas, not the abolition of the market economy and private property. My motto is: As much democracy as possible, as much market as necessary," said Krebs literally.
The economist believes socialization is necessary, especially when it comes to energy supply. In the short term, Krebs is calling for a comprehensive price cap for gas and electricity in view of high energy prices. In the long term, however, the state must go further: "The state creates security with a price cap. The signal would be: Things can't get worse. But in order to permanently reduce prices, the entire energy infrastructure must be socialized," said Krebs.
He cited the power grids as an example. Unlike in France and Denmark, for example, these are predominantly in private hands in Germany. Although network fees are set by the state, Germany has by far the highest electricity prices in Europe. They are 35 percent above the EU average: "We consumers pay BlackRock's double-digit returns. Private equity is simply too expensive," explained Krebs.
The economist also advocates socialization in the housing sector. When asked whether he supported the Berlin initiative “Expropriate Deutsche Wohnen & Co.,” Krebs said: “At least the basic idea, but there are differences in the implementation.” In his opinion, socialization should only extend to parts of the housing market.
"In addition, it should always be emphasized that socialization in Berlin is only about a limited segment: simple, standardized apartments. Private providers and innovative offers, for example in higher-priced housing, should remain. I want mixed neighborhoods," said Krebs.
The economist does not accept the objection that state-owned companies are fundamentally more inefficient. For a study, he compared the Hamburg municipal housing company Saga with the private real estate group Vonovia. "My conclusion: Public companies can be at least as efficient. But of course not all of them work equally well," he said.
Krebs differentiates his demands from a comprehensive move away from the market economy. "Private initiative where it works and competition produces innovation, public responsibility where it doesn't," he said. Most of the industry and production as well as large parts of the service sector should remain organized in a market economy. Private capital and competition are still needed for start-ups in the technology or AI sector.
Krebs bases his demands on Germany's economic situation. "We are currently experiencing the worst economic and affordability crisis of the post-war period," he said. If the growth from before the Corona and energy crisis had continued, according to his calculations, German economic output would be around eleven percent or around 500 billion euros higher today.
Krebs sharply criticized the CDU politicians, Chancellor Friedrich Merz and Economics Minister Katherina Reiche. "With him as Chancellor, better economic policy is simply not possible because he and Economics Minister Reiche are ideologically trapped in their belief in the market - and that has political consequences," said Krebs.
The economist links the economic situation with the rise of the AfD. If politicians do not get the crisis under control, he believes the party could come into government in 2029, but at the latest in 2033. Economic uncertainty and the impression that a government is not responding appropriately could drive people to extreme right-wing parties, Krebs argued.
