Although the “Grand Coalition” between Christian Democrats (CDU-CSU) and Social Democrats (SDP) isn’t a fait accompli just yet, German media reports that Angela Merkel and Martin Schulz have already agreed on a massive socialist housing agenda.
Until 2021, the parties reportedly want to spend an additional four billion euro to build “affordable” housing. Part of this budget will be used for “young families” dreaming of “owning their own home.” As part of this plan, the federal German government will help cities and municipalities find (and purchase) favorable building land. When they purchase land from the federal government for this purpose, they’ll get a significant discount.
Additionally, the parties want to make it “more attractive” for landowners to build homes — or to sell their land so homes can be built on it. In order to do so, they’ll “allow” municipalities to “raise taxes” on “unused land.”
In other words, if you’re a landowner who wants to keep his land without building any houses on it for other people, you’ll be punished.
As part of this grand housing project, the parties will reportedly grant lower and middle-income families 1200 euros per year per child when they buy a home. This arrangement would last for ten years. Per child.
Further, Merkel and Schulz want to make this subsidy available to families with income of up to 75,000 euro per year plus 15,000 euro per child.
The average German household’s net adjustable disposable income per capita is $33,652, or 27,000 euro.
To cap off this socialist agenda: rent control.
Landlords will be forced to disclose the pre-rent figure in new leases. If they don’t, they’ll face “sanctions.” And landlords can also only raise the rent based on a government-created index.
In other words, this coalition now in the works plans to infringe on property rights and dictate the market. All in the name of solidarity, of course.