Die Linke won the Berlin Parliament elections on 20 September with a consequence of 25.7%. Her candidate Elif Eralp wants to hand over about 240,000 apartments of large companies to the public. If the plan comes into force, German taxpayers can be charged a multi-billion-dollar bill, and investors get a signal that ownership depends on the political majority.
Die Linke for the first time at the head of Berlin
The left-wing Die Linke won 468,060 votes, or 25,7 percent, and first became the strongest organization in the election to the Berlin Chamber of Deputies. That's how it works. the authoritative preliminary result of the national electoral commissioner. CDU gained 18.8%, AfD 16.3 percent, Green 14.3 percent, and SPD only 12.1 percent. Turnout was 74.2%.
It's a strong shift in a city that's been struggling with costly housing and housing shortages for years. Elif Eralp built a run to promise to cut rent costs. Now he wants to conduct coalition talks with the Greens and the SPD. Arithmetics give specified a coalition a majority, but it does not yet mean an agreement or the election of Eralp to the office of the ruling mayor.
Die Linke's score should besides be seen against the background of a wider crack in the German scene. AfD grows stronger in the easternlands, while the extremist left prevailed in Berlin. The parties of the erstwhile center lose voters on both sides.
Plan to take over large companies' housing
Eralp announced the launch of the socialisation process of resources belonging to large companies with over 3,000 housing units in Berlin. According to the analyses cited by the German media, about 240 000 premises could be placed under public control. This is not about the housing of average families or tiny owners, but about the portfolios of the largest entities. This discrimination is important. However, it does not remove the fundamental problem: the state wants to politically decide who can hold legally acquired property.
Die Linke plans to set up a public law institution that would borrow, take over and manage apartments. Supporters hope that a larger share of the public sector will curb the increase in rents. In the Berlin referendum of 2021, the majority of voters supported the socialisation of the resources of large companies, but the consequence was not legally binding.
The problem begins with the bill. The Berlin Court of Auditors estimated the marketplace value of around 240 000 apartments at 40 to 42 billion euros. Eralp herself speaks of damages of between EUR 8 and 18 billion, assuming a valuation well below marketplace value. The lower the compensation, the greater the legal risk. The higher, the heavier the commitment to the city.
Cheap rents and costly credit
The Left wants to finance the operation with a debt paid out of rent. This is where the plan falls into its own trap. The rental income would besides cover interest, debt repayment, management and renovation, and rents should stay low. If the proceeds are not enough, the work will fall on the finances of Berlin and taxpayers. The city already has tens of billions of euros of debt.
The economical dispute does not concern just the takeover price. Berlin needs fresh housing. Forced acquisition of existing premises does not increase their number by even one. It can, however, increase investment risks and discourage capital from financing further buildings. The supply crisis will stay and politicians will have more power over the market.
This is peculiarly crucial erstwhile the same formation combines the expansion of state control with a liberal migration policy. The German Left besides advocates wider reception of migrants. expanding request for housing requires more supply, efficient infrastructure and clear rules. Ideological property management will not replace building.
Lesson for Poland: property must be safe
Berlin shows how a real housing problem can become a fuel for a program that hits economical freedom. erstwhile the center has been incapable to increase the supply of premises for years, the extremist left promises a simple shortcut: take over the existing assets and distribute them according to a political plan. The cost is delayed.
For Poland the rate is clear. The State should facilitate housing, free land, simplify procedures and guarantee fair marketplace rules. It cannot make an atmosphere in which legal property becomes the prey of another majority. Without legal certainty there will be no investment, no fresh premises or lower prices. For this there will be a greater debt and an even stronger dependence of the citizen on the office.
Source: Berlin national electoral commissioner, ZDFheute, n-tv.
Source: liberoquotidiano
