Berlin Left, Greens, SPD agree on expropriation, start coalition talks

Elif Eralp (Left), Steffen Krach (SPD), Werner Graf (Greens) after their agreement. Photo: Fabian Sommer/dpa

By Erik Peter and Lotte Laloire

A Surprising Compromise

They announced their vision on the tenth floor of the Haus der Statistik at Berlin's Alexanderplatz. At 5 p.m. on Saturday, the lead negotiators of the Left Party, Greens, and SPD — Elif Eralp, Werner Graf, and Steffen Krach — stepped before the press to share details of their agreement. The surprise: even on the contentious issue of socializing large housing corporations, a compromise has been reached.

Left Party election winner Eralp was the first to speak: "Together we strive for a Berlin that is affordable, climate-friendly, and economically strong." Werner Graf added that "the question of democracy is at the center," and Steffen Krach continued: "What matters to all of us is that we bring this city together."

SPD Yields to the Majority

According to Eralp, the three parties' central concern is "solving the rent crisis." On the contested issue of socialization, the Left Party prevailed. "By mid-2028, a socialization law will be presented to the House of Representatives," Eralp promised. A year later, the socialization is to be carried out — possibly after review by the Federal Constitutional Court.

Unlike previous discussions, the threshold for transferring private housing stock is to be set at 10,000 apartments. The corporations affected would be Vonovia, Heimstaden, Covivio, Adler, and probably DVI. While this would cover fewer apartments than the referendum had envisioned, it still amounts to approximately 160,000 apartments — nearly 10 percent of Berlin's total housing stock.

SPD leader Steffen Krach, who had repeatedly spoken out against this step, called it an "absolutely defensible compromise" that he could support as a "democrat" with a different opinion. This includes capping compensation at 16 billion euros without burdening the budget, and excluding apartments newly built from 2021 onward from socialization. According to Krach, this sends a signal that everyone who wants to build in Berlin is welcome.

What Exactly Have the Parties Agreed On?

Common ground is the common thread running through the exploratory paper. It bears the title "More Together, More Berlin." "Especially now, we need a unifying politics that brings people together," it states.

The very first section addresses housing and socialization — the major sticking point. The three parties now agree "that the application of Article 15 of the Basic Law is a contribution to expanding the municipal housing stock and overcoming the crisis in the housing market."

Eralp called the promise of 100,000 new apartments by 2031 "very ambitious." SPD's Krach expressed satisfaction with the agreed triad of "new construction, law and order in the housing market, and capping rents." The latter applies to state-owned apartments, whose rents are to increase by no more than 2 percent per year. A new authority is to be established to monitor rents.

Neighborhood canteens, cheaper social tickets, free Museum Sunday — the list of individual measures agreed upon is long. But Krach emphasized: the paper contains "no billion-euro promises and is seriously costed." Given a budget deficit of 5 billion euros, the parties agreed on a consolidation course. New revenues from taxes and fees amounting to 400 million euros annually are also expected to help.

For the Greens, their representative Werner Graf also has plenty to offer: from the goal of a "climate-neutral metropolis" with net-zero sealing from 2030, investments in cycling infrastructure, priority for buses and trains, examination of a packaging tax, rejection of development on the Tempelhofer Feld, and an extension of the A100.

Police to Receive Enhanced Capabilities

The exploratory paper is 25 pages long. Additionally, the document contains the Berlin Declaration on combating antisemitism, which the Left, SPD, and Greens had already signed on October 8. An annex also addresses the fact that all three parties find organized crime objectionable. "Even proactively making or responding to contact with individual persons constitutes a serious violation of our principles," the three parties wrote, following post-election allegations of contacts with criminal milieus.

The topic of antisemitism is mentioned in 7 places throughout the document. In one passage, it states: "For peaceful coexistence in Berlin, it is clear that we oppose antisemitism with all our strength. Palestinians also experience racism in Berlin, which we fight against." The parties aim to decisively counter violence, incitement, conspiracy narratives, and the denial and relativization of the Shoah. "We clearly name Israel-related antisemitism."

Police and the domestic intelligence service are to be strengthened "in their mandate to protect Jewish life in Berlin." They are to receive equipment and expertise to recognize and combat antisemitic crimes and threats at an early stage. The protection of Jewish institutions and communities is to remain guaranteed. Prevention of antisemitism is also to be more strongly supported.

Krach now says that on the sensitive issue of internal security, agreement was reached "relatively quickly." It is a "fundamentally social question that people can move freely and safely on the streets." The police are to be strengthened, police stations renovated, a state security council introduced, and the domestic intelligence service equipped with better parliamentary oversight.

A Difficult Path to Get Here

Little of the debates of recent weeks is apparent among the three negotiators. Werner Graf even speaks of a "very strong trust" that has developed, of a "wonderful spirit" in the discussions.

Whether coalition negotiations would even begin was long in doubt. After the Left Party decided on Tuesday on its own paper regarding antisemitism and the admission of Neukölln parliamentarian Vanessa Emde into the parliamentary group, SPD and Greens initially suspended the talks.

When the exploratory talks resumed, a statement by Emde caused a stir in which she made clear she would not compromise on her position regarding the Middle East. The Left Party parliamentary group leadership reacted quickly, distancing itself from Emde. A decision on whether she remains in the parliamentary group is to be made on Tuesday.

What Happens Next

The start of coalition negotiations still requires party approval. The Greens' small party conference is to decide on Monday. The SPD's state board will address the exploratory results, also on Monday. The Left Party is taking more time due to Berlin's two-week autumn holidays. Its party conference is scheduled for October 31. Negotiations could therefore begin in early November.

A coalition of the Left, Greens, and SPD has a comfortable majority in the House of Representatives: together, the three parties hold 91 seats — 14 more than needed for an absolute majority. Mathematically, a coalition of CDU, Greens, and SPD would also be possible, though with only two seats it would have just a narrow majority.

When asked about Federal Chancellor Friedrich Merz's (CDU) renewed warning against a left-wing alliance, Krach was blunt: "Merz should get his own government and his party under control. That would help the country more."

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Related articles:

• Agreement on Expropriations: Three Winners for Berlin — What the Left, Greens, and SPD plan for the capital gives hope: for a more social city and a political shift that radiates beyond Berlin. By Erik Peter
• Socialization in Berlin: End of the Neoliberal Mantra — Commentary by Timm Kühn. The Left, Greens, and SPD have agreed: large housing corporations will be socialized. Despite open questions, this is a true project of hope.
• The Left Party in North Rhine-Westphalia: The State Parliament Firmly in Sight — After 14 years, the Left Party in NRW has good chances of returning to parliament. Its membership has already tripled.

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