The leaders of the SPD and the Union are currently engaged in intense negotiations regarding the allocation of at least one billion euros to establish a nationwide, federal housing company. According to reporting by “Spiegel”, Federal Finance Minister Lars Klingbeil (SPD) appears determined to fund this project, although this plan is causing irritation among his coalition partners from the Union.
Federal Minister for Construction, Verena Hubertz (SPD), envisions a company where the federal government holds a 51 percent stake, with the remaining 49 percent held by external entities. The government does not intend to handle construction itself; instead, it plans to award contracts to these partners, which could include private sector companies or municipal and state-owned housing associations. Through its high credit rating, the federal government would guarantee the construction projects, thereby helping to reduce interest costs. Rolf Buch, the former CEO of the housing giant Vonovia, is providing advisory services to the Ministry of Construction on this matter. He confirmed to “Spiegel” that he is available for substantive discussions but will not receive payment for his advice.
However, the Sozialdemocrats’ initiative is creating unease within the CDU and CSU. These parties have their own projects planned for realization next year, such as an income tax purchasing power adjustment or the almost complete elimination of the electricity tax for private customers. These alternatives would collectively cost the federal government nearly eight billion euros. Finance Minister Klingbeil states he will only support these measures if parties propose how they should be financed. This leaves Union politicians astonished that room has opened up in the budget for the housing company project. One Union finance politician told “Spiegel” that the Finance Minister suddenly seems to have magically found money in the budget, specifically for a project originating from an SPD ministry. The Ministry of Construction declined to comment on the plans when asked by the magazine.
