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Coalition Talks in Berlin Result in Agreement Between CDU and SPD on new Construction Goals

In Berlin, 5,000 social housing units are to be built every year in the coming years. According to Tagesspiegel information, the CDU and SPD have agreed on this in the ongoing coalition negotiations.

In order to achieve this goal, a significantly larger financial subsidy from the state than before is probably necessary due to the increased construction costs. “The amount will have to be adjusted significantly in the direction of one billion,” says negotiators.

The new black-red coalition would thus adopt the target of the previous red-green-red government. Social housing in Berlin is currently rented cold at EUR 6.60 per square meter. Due to the increased prices in the construction sector, however, the necessary investments in new construction can no longer be financed.

The amount will have to be adjusted significantly in the direction of one billion.

From negotiation circles on state subsidies for social housing

The red-green-red Senate therefore agreed at the end of September 2022 to finance social housing construction with up to 740 million euros annually from 2023. The public loans were increased from 1,800 euros to 3,550 euros per square meter during construction.

In addition, the CDU and SPD are said to have agreed to maintain the Senate’s current goal of 7,000 new state-owned apartments per year. In the past, however, both targets were regularly and sometimes significantly missed.

Need to speak on the subject of tenancy law and housing

When it comes to tenancy law and housing, Christian and Social Democrats apparently still need to speak. In many cases, the points were passed on to the members of the umbrella group for clarification, it said. These include stricter requirements for the Housing Supervision Act in Berlin and an expansion of the obligations for private builders in the cooperative building land model regarding the proportion of socially subsidized apartments.

In the meantime, the first two specialist groups for the topics of sport and civic engagement as well as culture, media, churches, metropolitan regions and Europe have submitted their result papers on time. And even though the negotiating teams pledged themselves to silence on Monday, details leaked out.

The public will be informed on Friday

The members of the culture working group had delivered significantly more than the requested eight pages of results, which is why the members of the umbrella group had to cancel numerous projects. “The decisive factor is what can be financed in the end,” it said on Monday. The shortening of the proposals from the specialist groups is one of the tasks of the political decision-maker, it said.

The members of the Economics, Energy, Technology, Businesses specialist group are also on schedule. According to members, both sides have agreed in particular on the municipalization of gas and district heating supplies.

According to information from the Tagesspiegel, a takeover of the majority stake in Gasag is also planned, as is the municipalization of the district heating supply. Members of the umbrella group will consider the proposals on Wednesday. A detailed public briefing is planned for next Friday.

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