Steffen Krach, the designated SPD candidate for the upcoming Berlin state parliament election, has outlined plans to tackle speculative housing practices and excessive rent increases within the German capital should his party emerge victorious.
Speaking to “Welt” Krach emphasized the need for greater regulation of the Berlin housing market and underscored the importance of enabling the state to fulfill its responsibility as a provider of essential services. He addressed the ongoing debate surrounding the proposed “Vermögensrückübertragungsgesetz” (Asset Transfer Act) and the approach towards large property companies. Krach stated that companies adhering to the principles and rules of the social market economy would face no concerns. However, he asserted that the society should have the means to intervene when properties are left vacant for speculative reasons or when landlords neglect housing stock, leading to residents being displaced.
Krach refuted concerns within Berlin’s SPD regarding potential expropriations, stating that “no company must fear being expropriated”. Instead, he aims to attract more businesses to the capital, emphasizing a desire to make Berlin “the most attractive business location in Germany.
The candidate also criticized a recent proposal from Markus Söder, Bavaria’s Minister-President (CSU), regarding the regionalization of inheritance tax. While acknowledging the need to address inheritance tax, Krach opposed Söder’s suggestion that each German state should independently decide on the matter. He argued that this would constitute a renunciation of solidarity among the states and described it as fundamentally incorrect, accusing Söder of questioning “a fundamental pillar of this state” and undermining the democratic system, particularly given the current situation facing the country.
