Berlin’s SPD parliamentary group has drafted legislation for Germany’s first societal ownership law, according to reports. The proposed law aims to directly address public needs in essential sectors such as housing and the provision of energy, water and heating.
The outline for the law was finalized by the CDU and SPD parliamentary leaders in late June. The initiative is a response to the successful citizen’s referendum “Deutsche Wohnen und Co. enteignen” (Expropriate Deutsche Wohnen and Co.) and is based on Article 15 of the German Basic Law.
Raed Saleh, leader of the SPD parliamentary group, stated that “societal ownership enables states to achieve social market regulation, even without expropriation”. He suggested Berlin could limit profit maximization or market-oriented practices, potentially allowing the state to impose a price cap on all landlords for a period of five years. Saleh added that the framework law provides a foundation for such measures, eliminating the need for federal exemptions.
However, the CDU has a differing perspective. Dirk Stettner, leader of the CDU parliamentary group, clarified that “the new law is intended to create a legal framework; it is not intended for a rent cap” a measure the CDU has stated it will not support.
Four years ago, the Federal Constitutional Court ruled a previous rent cap implemented by the then-government unconstitutional, citing a lack of legislative competence. The governing coalition agrees that the societal ownership law could lead to cost savings for the state. While acknowledging that the effect is similar to expropriation, Saleh argued that “societal ownership allows for such measures with significantly lower compensation”.
