Lack of Progress on Expropriation Law Draft in Berlin

The proposed expropriation framework law in Berlin, which was expected to address housing concerns, is facing significant delays. Despite earlier announcements from the governing coalition of CDU and SPD regarding the legislation, there has yet to be any commissioned legal assessment to guide this initiative.

Recent communications from the Finance Administration reveal that a written inquiry from Green party representative Katrin Schmidberger has highlighted the slow progression of the proposed bill. The much-anticipated legal opinion, which is essential for the drafting of the framework law, has not yet been assigned, although officials now indicate that this may occur by late April or early May.

In September, Finance Senator Stefan Evers (CDU) assured that the legal assessment would be initiated soon, but exact financial implications remain unspecified. However, the main committee of the House of Representatives has approved a budget of up to 100,000 euros for this purpose.

Officials aim to present a draft of the expropriation framework law within the final year of the current legislative period, with the next elections for the House of Representatives scheduled for autumn 2026. This legislation is intended to provide a legal structure for potential state interventions in public services, encompassing not only housing but also sectors like energy, water, and healthcare.

The legal analysis is crucial for determining the feasibility of a regulation that would withstand constitutional scrutiny. The coalition partners had previously agreed upon this framework law as part of their coalition agreement in 2023, stemming from a successful 2021 referendum where over 59% of voters supported the expropriation of large property companies with more than 3,000 residential units in Berlin.

The referendum result was seen as a mandate to curb the relentless rise in rental prices in the city. However, the lack of a formal legislative proposal following the referendum means that the government is not bound to act on the voters' decision. Advocacy groups, including the initiative 'Deutsche Wohnen & Co. enteignen', have repeatedly criticized the government for not taking the necessary steps to implement the will of the electorate.

As Berlin grapples with escalating housing costs, the urgency surrounding this legislative effort becomes increasingly evident.