German Government Moves to Block Berlin Housing Expropriation

The German federal government has announced plans to introduce legislation that would prevent Berlin from socializing private housing companies following a successful referendum. The move, part of a broader reform package passed by the black-red coalition before the summer break, states that federal law will regulate that the socialization of private rental housing stocks through state-level socialization laws is no longer possible. Chancellor Friedrich Merz said that "all over the world people are asking what is going on in Germany, do we have to reckon with expropriations in Germany," and promised to prevent such measures. The announcement came less than 24 hours after a poll for the Berlin state election showed the Left Party ahead of the CDU for the first time. The constitutional legality of the federal government's move is disputed, and critics argue it could primarily buy time for the housing corporations. The referendum in Berlin, which called for the expropriation of large housing companies, had been successful, prompting the federal government to act. The proposed law is controversial and may face legal challenges.