24
GERMANY
ISSUE
I
POLITICS
P
rivate or state-owned property? For
the upcoming Bundestag election,
this seems to be the pivotal question
in the focus of the political agenda in
construction and housing policy. Experts
can only agree that very little is likely to
happen before the election regarding the
completed coalition agreement.
NEW RESIDENTIAL CONSTRUCTION: TAX
BREAKS A BONE OF CONTENTION
Construc-
tion spokeswoman of the CDU/CSUBun-
destag faction, Marie-Luise Dött, says this
involves solutions to the housing shortage
that promote home ownership in regions
of high population density. Ultimately,
the type of building is of secondary im-
portance: When people with the necessary
capital buy their own homes, it frees up
housing, making it available to people with
less financial means.
The state should provide the frame-
work for developing mixed and there-
fore stable residential areas with rented
and self-owned residences by using tax
breaks to encourage the purchase of pri-
vately-owned homes and the construction
of social housing. More specifically, Dött
argues in favor of straight line tax deduc-
tions of three percent without any condi-
tions attached to it. Regarding the issue
of social housing, she prefers support in
the form of housing allowances as this
can be used more precisely. She points to
the proposals to lower construction costs
from the commission of the same name,
which developed fragmented and concrete
ideas on behalf of the Federal Ministry of
Construction over several months –which
have been shelved for the moment, how-
Setting the Course for the Election Year
Even if detailed programs still have yet to be announced, the major parties have nevertheless
set their real estate course for the upcoming Bundestag election. In the area of conflict
between privately owned and rental property, members of parliament are also eyeing the
state of Berlin with its new, left-wing Senator for Building and Construction.
ever. Dött feels any assessment of the rent
control legislation is premature.
The construction spokeswoman for
the Left Party Bundestag faction, Caren
Lay, takes a skeptical view of these posi-
tions. To make energy-efficient renova-
tions financially attractive, the Left Party
favors a five billion euro program in the
form of subsidies or tax breaks. The left-
wing faction basically advocates construc-
tion of rental housing and is in favor of
a strong state that builds social housing
and thereby keeping a diverse mix in city
districts. “Social housing is also geared to-
wards the middle class,” Lay explains. In
this way, inner-city locations will remain
accessible to average wage earners.
Not only the areas of high
population density with
their tight housing markets,
also rural areas and the
challenges of a steadily
growing urban-rural gap
are all playing a role in the
political parties’ programs.
CDU MP Marie-Luise Dött
explains: “This is a matter
of providing people with
equivalent living condi-
tions.” She uses small
towns as an example;
families have been success-
fully offered incentives like
child allowances and other
benefits to either stay or
resettle there. However,
the reality is that some
very small towns cannot
be sustained in the long
run – history is repeating
itself here, in the course of
which towns have disap-
peared and new ones have
emerged, says Dött.
The Green faction is
pursuing similar ideas and
talks about targeting young
families to bring them
back to the centers of rural
areas. At the same time,
the infrastructure must be
expanded in such a way
that the workplaces in the
area can also be reached by
public transportation. With
these ideas, the Greens
are coming close to those
of the SPD faction – MP
Groß also emphasizes the
importance of public trans-
portation in rural areas. Left
Party politician Caren Lay
would rather see municipal
investment programs for
the economy and specifi-
cally promote weak areas
and regions. “We want to
move our focus away from
strengthening our strengths
towards combining strength
with weakness,” she says.
URBAN-RURAL-GAP
Strengthen medium-sized cities, recognize the realities
THE VIENNESE MODEL
The city of Vienna
should serve as the model, where tradi-
tionally the supply of affordable housing is
conferred to various income groups. The
city annually invests amounts in the high
triple-digit millions in the construction of
social housing. Although some mistakes
have been made, on the whole, the “Vien-
nese Model” has gained international at-
tention as an effective means for a diverse
and growing city.
Social considerations are also visible
throughout the tax plans of Lay’s faction:
The real estate transfer tax, for example,
should be scaled based on social aspects.
The federal government and the states
should promote models like hereditary
