GBAF Logo
Global Banking & Finance Awards® 2026 Nominations open, free to enter Nominate now →
Far-left leader pushing to lead Berlin says city has voted for change - Finance news and analysis from Global Banking & Finance Review
Finance

Far-left leader pushing to lead Berlin says city has voted for change

Published by Global Banking & Finance Review

Posted on September 21, 2026

4 min read

· Last updated: September 21, 2026

Add as preferred source on Google

Berlin Voters Choose Change as New Mayor Pledges to Tackle Rent Crisis

Berlin's Political Shift and the Challenge of Affordable Housing

By James Mackenzie

BERLIN, Sept 21 (Reuters) - The far-left leader pushing to take over as mayor of Berlin promised on Monday to tackle unaffordable rents in the German capital, but faced early pressure to take action over accusations of antisemitism in parts of the local party.

Elif Eralp led the Left Party to their best result in Berlin where they displaced Chancellor Friedrich Merz's conservative party in the mayor's office and look set to head a coalition governing the city for the first time.

"Berlin has clearly voted in favour of a change in policy, for an affordable Berlin where everyone can live with dignity, regardless of income or background, and for the rent crisis to be tackled consistently at long last," she said on Monday.

Plan Targets Corporate Landlords

Famously described by former mayor Klaus Wowereit as "poor but sexy", Berlin has become increasingly expensive and its once famously cheap rents are now a thing of the past. 

Eralp has pledged to expropriate more than 200,000 housing units from corporate landlords in a campaign which saw the party, whose roots lie in the former East German communist party, make gains in central and western areas of the city as well as its traditional strongholds in the east.

Financing and Political Opposition

"I still stand by that," she said on Monday, despite questions about how to finance a move the centre-left Social Democrats estimated would cost some €20 billion ($22.94 billion).

She said she aimed to reduce the influence of corporate landlords such as Deutsche Wohnen and Vonovia. Vonovia Chief Executive Luka Mucic said the group was ready to discuss solutions to Berlin's housing shortage but that "socialisation doesn't create any new housing".

Merz, who said the policy would have "devastating effects" on foreign investment if it were ever implemented, said he expected swift legislation to prevent expropriations.

Comparisons and Campaign Strategy

Mamdani an Example

Compared by some to New York mayor Zohran Mamdani, whose campaign to make the city more affordable saw him win an unexpected victory last year, the 45-year-old Eralp is the child of left-wing Turkish parents who sought asylum in Germany after a military coup in 1980.

Personal Campaigning and Youth Support

Like Mamdani, her campaign focused heavily on personal campaigning and social media and she scored particularly strongly among the young, while winning support from thousands of Berliners who previously did not vote.

"As a woman, I'm reluctant to compare myself to a man. But naturally Mamdani's success was a big example for us," she said. "And we were very happy about it, because that election victory sent a very clear signal — not just to New York, but to the entire world."

Little known outside left-wing circles before the campaign, she now stands poised to lead the German capital at a time when the far-right Alternative for Germany (AfD) has made increasing gains across the country and posted its best-ever result in liberal Berlin.

Coalition Building and Antisemitism Concerns

Potential coalition partners in the centre-left Social Democrats and the environmental Greens have indicated they are ready to talk about forming a government.

But both have demanded Eralp address the longstanding accusations over antisemitism that have been levelled against some local branches of the Berlin party, often in connection with criticism of Israel.

Sensitivity and Political Response

The issue has been extremely sensitive in Germany, which has seen a surge in antisemitic incidents since the October 7, 2023 attack on Israel by the militant group Hamas and the Israeli campaign that has laid waste to Gaza and killed tens of thousands.

Merz said the rise in antisemitism was a "disgrace for Germany" and pledged action to combat incidents in Berlin that he said had caused concern to European partners.

Eralp said it was her "absolute priority" to ensure that Jewish people in Berlin along with Muslims and all other groups "feel safe and can lead a good life here".

"It is absolutely clear to me that the glorification of violence and terrorism is completely unacceptable," Eralp told a news conference.

Additional Information

($1 = 0.8718 euros)

(Additional reporting by Christian Kraemer; Editing by Andrew Heavens)

Key Takeaways

  • Eralp leads Left Party to historic ~25% result, overtaking CDU (~19 %) (lemonde.fr)
  • She pledges to expropriate around 220,000 apartments via public agency, financed by loans (lemonde.fr)
  • Estimated compensation costs vary widely—from €7–14 billion to €29–36 billion—fueling debate (berlin.de)
  • Only 37 % support expropriation in a recent poll; 51 % oppose—and coalition partners SPD and Greens remain cautious (marketscreener.com)
  • Vonovia offers dialogue and argues expropriation won’t create new housing (onvista.de)

References

Frequently Asked Questions

Who is Elif Eralp and what position is she seeking in Berlin?
Elif Eralp is the leader of the Left Party in Berlin and is seeking to become the city's mayor after their victory in local elections.
What is the main policy focus for Elif Eralp's campaign?
Her main policy focus is tackling unaffordable rents in Berlin by expropriating housing from corporate landlords and making the city more affordable.
How does Eralp plan to address corporate landlords in Berlin?
Eralp has pledged to expropriate over 200,000 housing units from corporate landlords such as Deutsche Wohnen and Vonovia.
What challenges does Eralp face regarding accusations of antisemitism?
Eralp faces pressure to address longstanding accusations of antisemitism within parts of the Berlin Left Party, especially amid heightened concerns since events in Israel and Gaza.
What is the potential impact of the Left Party's housing policy on investors?
Chancellor Merz has warned that expropriation policies could have "devastating effects" on foreign investment in Berlin.

Tags

Related Articles

More from Finance

Explore more articles in the Finance category