Overview
- Linke, Greens and the SPD completed exploratory talks over the weekend and will ask party bodies this week to start formal coalition negotiations in Berlin.
- Their Sondierung paper targets firms holding more than 10,000 apartments, aims to transfer roughly 160,000 flats to public ownership under Article 15 and caps compensation at €16 billion.
- The CDU/CSU leadership, led by Friedrich Merz and Markus Söder, and the Junge Union publicly condemned the plan and pushed proposals such as cutting intelligence sharing with a Berlin left government and fast-tracking a federal ban on the measure.
- The federal coalition is under fresh strain after SPD co‑leader Bärbel Bas’s resignation and leadership changes in the SPD that increase pressure on ministers to choose between staying in government or shifting to opposition.
- Legal experts and several politicians say the law—slated for a mid‑2028 drafting and later implementation—will almost certainly face long constitutional review and industry lawsuits, a delay likely to limit near‑term effects on rents and housing supply.