Tuesday, September 29, 2026

Berlin-City 'Twist'

 Elif Eralp, the new Linke Party leader in Berlin....is trying to form a coalition centering around a pledge to 'seize' ownership of 200,000 apartments to be city-property (instead of commercial property rentals)....meaning the city can control the rent price.

The process is called.....Enteignung / Enteignungsverfahren (expropriation under Art. 14 GG and the Building Code / BauGB).  In simple-talk....a city or public authority takes specific properties for a concrete public purpose (it could be a building, a school, a private street).  

The key here....there's compensation required.

If you said you were seizing/expropriating....six buildings (20 apartments in each) worth a cost of 100 million Euro....you can perform the act, but your lawyers are going to present the bill (validated by a court) for 100 million Euro.  Where this money comes from?  Well....your budget, or you borrow the money.

So when you talk about 200,000 apartments....you are probably discussing about 150-plus buildings, and you need to start calculating a necessity for five to ten billion Euro.  

Would the German federal gov't (Merz and company)...give them even a quarter of that amount?  NO.  

Does anyone within the Linke group fully understand expropriation?  I have my personal doubts.

Do Linke-voters understand expropriation?  I seriously doubt it.

My personal belief....they (the Linke-led city council) might rig up some property tax, and have the money to 'grab' two or three apartment buildings per year (figure each in 1-million Euro each)...with the buildings being in fix-it-up condition.  So they'd have to find another 5-million for renovation of the structures.

The key problem here?  Well....the SPD Party wants to be a partner in the coalition, but they probably won't sign up for expropriation efforts.

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