Steffen Krach, the presumptive SPD candidate for the upcoming Berlin state parliament election, has outlined plans to address housing speculation and excessive rent increases within the German capital.
Speaking to “Welt” Krach stated the need for enhanced regulation of Berlin’s housing market and a strengthened role for the state in ensuring public welfare. He referenced the planned draft law on compulsory acquisition by the current coalition government and its implications for large housing companies.
However, Krach sought to dispel concerns regarding potential expropriations, asserting that “no company needs to fear being expropriated”. Instead, he emphasized a commitment to attracting more businesses to Berlin, aiming to establish the city as Germany’s most appealing economic hub.
Krach also criticized a recent proposal by Bavarian Minister President Markus Söder (CSU) to regionalize inheritance tax. While acknowledging the need to revisit inheritance tax policies, Krach opposed Söder’s suggestion of allowing each state to independently regulate it. He described the proposal as a “renunciation of solidarity between the federal states” and a fundamental challenge to the nation’s foundations, particularly given the current circumstances. Krach accused Söder of undermining the democratic system and cautioned against such actions during a period of national importance.