Due to expropriation debate : Berlin fears for credit rating

The credit rating Agency Moody's warns of the consequences of the expropriation debate for the credit rating of Berlin. The planned referendum should be about the nationalization of private real estate companies such as Vonovia or the Deutsche Wohnen successfully, would affect the Berlin's credit profile negatively, says a new comment to the Agency. The expropriation of real estate companies would attract the possibilities of capital to reduce investors and also the debt to a record high press.

The government expressed on Wednesday concern about this warning. Although the impact of the Moody's comment, not to be in sight, said Finance Minister Matthias Kollatz (SPD) to the daily mirror. But: "Notwithstanding the assessment of the credit rating Agency is to be taken seriously."

compensation, would increase Berlin's debt at a stroke in the height

in view of the rent increase in Berlin, an Initiative wants to collect from April of signatures for a referendum. The aim is for companies with more than 3000 apartments to "socialize". The push is primarily aimed at the group, Deutsche Wohnen, which owns in Berlin, around 110,000 dwellings.

According to one estimate, of the Senate, the country would have to pay for expropriation of the group compensation in the amount of up to EUR 36 billion. Moody's warns, therefore, against the consequences for the Budget. "The compensation would increase Berlin's debt to a shock in the level and the fiscal consolidation efforts which has done the country in the last few years," said Moody's Analyst Harald Sperlein to the daily mirror. At least in the short term, the capital has no reason to fear demotion. "The long-term Rating remains on a stable Outlook and the rating of the relevant fundamentals have improved in the last few years, even continuously."

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economy reacts in horror

The economy responded on Wednesday appalled at the move by the rating Agency. "The Consideration on the financial markets, Berlin's credit rating upgrade, so it needs to be the Senate, a clear warning," said Christian Amsinck, chief Executive of enterprise associations Berlin-Brandenburg (UVB), the daily mirror. "This would mean that the country would have to pay in the future significantly higher interest rates for new loans." Currently, the Senate's plan to spend billions on public transport, for the construction of the school building for the re-municipalisation of energy networks, for the repurchase of the apartments in Grand style, or for compensation to the expropriations. "This shows that many overestimate in the coalition, the financial possibilities of Berlin completely," said Amsinck.

expropriation campaign started at the end of 2018

the campaign for The expropriation of the real estate companies was launched at the end of 2018 from a private Initiative and was held since then in the Koalitionären of the Berlin Senate support. The left party had demanded such a step is already on its party Congress in December 2018, followed by Green-group leader Antje Kapek, who approved of him in January for "particularly egregious cases". Financial Senator Kollatz warned on Wednesday, however, prior to the expropriation. "This is a policy I do not agree with that."

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request for a referendum in Berlin on expropriation of real estate corporations, according to the report, it is legally possible

The expropriation campaign is not the only housing policy measure to the current coalition internal dispute. The SPD and the Left argue, also, on the proposal of the social Democrats, a Rent cap for Berlin. Both sides accuse each other of delaying the project.