In Berlin, those who fail to comply with the green agenda could lose their company. That is what the new legal framework promoted by the CDU and SPD in the German capital’s Senate stipulates. Under the label of Vergesellschaftungsrahmengesetz (framework law on collectivization), the coalition has agreed on an instrument that would allow the State to expropriate private companies if, in the opinion of the political authorities, they fail to meet climate goals or invest “too little” in the public interest.
The initiative, announced by parliamentary leaders Dirk Stettner (CDU) and Raed Saleh (SPD), foresees that this mechanism could be applied to companies that repeatedly violate the law, extract profits without reinvesting, or—and here lies the qualitative leap—fail to do enough to meet the environmental commitments of the EU, the federal government, or the state (Land) itself.
Although the CDU is trying to downplay the the measure—“we are not talking about expropriations,” said Stettner—the terms of the draft legislation speak for themselves. Politics may intervene when it detects “obvious and manipulative failures” in the market. And that margin of interpretation is as broad as it is subjective.
The SPD, for its part, openly admits that this law creates a “toolbox” to intervene in economic processes that are deemed deviant from a political perspective. Among the measures included are price controls, legal limits on business profits, forced transformation of ownership models into forms of “communal economy,” and, ultimately, direct state ownership.
The legal text also outlines indicators for applying these interventions in sectors considered essential for Daseinsvorsorge (basic public services): housing, energy, and water. Thus, the State can assess when a company no longer serves the “common good” and act accordingly. As the project acknowledges its potential unconstitutionality, its implementation would be delayed for two years to allow for a review by the Constitutional Court.
This type of legislation reshapes the very notion of private property in Germany. It is no longer about punishing crimes or economic fraud, but about sanctioning those who fail to act according to the prevailing ideological standards, especially in climate matters. The legal uncertainty this creates threatens to drive away investment and set a dangerous precedent: if the climate justifies everything, what remains beyond the reach of the State?
Beyond the Berlin case, this move could inspire other Länder or European institutions. It reinforces the drift toward a planned economy, in which business merit is replaced by political conformity.
In 2021, 58% of Berliners voted to nationalize large real estate companies. That referendum is being used as a reference point to extend the concept to all sectors.. In the Europe of “you will own nothing and be happy,” Germany seems determined to lead the way.
