According to CDU leader Stefan Evers, the socialization plans adopted by the Left coalition pose serious disadvantages for the city of Berlin. Speaking to Spiegel, Evers noted that since the Left won the election, key financial institutions have become less willing to extend loans to the city. He specified that these are reputable, even public, banks.
Evers warned that this development will continue to strain the city budget. He explained that when the supply of credit becomes scarcer, prices rise, meaning the city will soon have to pay increased risk premiums.
The politician asserted that Berlin is already paying a high price for the Left’s electoral victory, particularly concerning the housing market. He revealed that when he consulted major players in the housing construction industry, these developers indicated they are not willing to invest in new housing projects because they deem the risks too high. Consequently, Evers concluded that a reduced supply of apartments necessitates rising rents.
