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The Bauen-Agrar-Umwelt industrial union (IG Bau) has spoken out in favor of the partial nationalization of Germany's two largest housing groups, Vonovia and LEG. With its entry, the state should influence the rental market. "The federal government should buy into large, listed housing companies and thus secure a say in the long-term rental price policy of the real estate groups," said Chairman Robert Feiger to the newspapers of the Funke media group (Monday).
The aim must be a blocking minority of 25 percent of the shares plus one share. Specifically, Feiger named the two real estate heavyweights Vonovia and LEG.
"In this way, the federal government can influence important strategic decisions on the supervisory boards of companies," argued the union boss. “The state would thus signal that – after many privatizations – it is again interfering in the housing market.”
The state could then “have a say in everything that matters: including the rental strategy,” said Feiger. Specifically, it is about putting a damper on rents in the future. "Because it's high time that real estate groups no longer just look through the lens of returns, but also live up to their social responsibility." It is important to "pull the teeth of the "rental sharks" - at least the sharpest".
Feiger hopes that this will have an impact on the rent index: "Government involvement could mean breaking the rental spiral in many cities and regions." As a further advantage, he cited the possibility of fundamentally influencing corporate policy: how apartments are kept in good condition and what service tenants get - from repairs in the house to the amount of ancillary costs such as for the maintenance of the residential complex, winter service and insurance.
The trade unionist also argued that state participation in Vonovia and Co. should also “take the pressure off the discussion about expropriations from real estate groups considerably”.
IG Bau begins its four-day trade union day in Kassel this Monday, and Federal Building Minister Klara Geywitz (SPD) is also expected to attend the opening.
