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Far-left party wins Berlin election, pledging to nationalise housing - Headlines news and analysis from Global Banking & Finance Review
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Far-left party wins Berlin election, pledging to nationalise housing

Published by Global Banking & Finance Review

Posted on September 20, 2026

3 min read

· Last updated: September 20, 2026

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Left Party Wins Berlin Election, Promises to Nationalise Private Housing

Berlin Election Results and Political Implications

By James Mackenzie

Election Outcome and Left Party's Victory

BERLIN, Sept 20 (Reuters) - The far-left Left Party's victory in the Berlin state election on Sunday was overshadowed by the continuing advance of the far-right in eastern Germany but it marked another defeat for Chancellor Friedrich Merz's ruling coalition.

Campaign Focus: Housing Crisis

Lead candidate Elif Eralp campaigned on the soaring cost of housing in the German capital and immediately promised to follow through with a pledge to nationalize private housing associations that account for a large share of the city's housing stock.

Potential Historic Mayoral Appointment

The result, which roughly doubled the party's previous score, could see her become the first mayor of Berlin from the Left Party, which grew out of the former East German communist party, following the reunification of the country 36 years ago.

With counting still going on late on Sunday, it was already clear that her party were set to displace Merz's conservative Christian Democrats (CDU) from the mayor's office.

"From today, we're changing Berlin together," she told celebrating party members in Berlin.

Election Statistics and Voter Sentiment

Party Performance Breakdown

The Left Party took 25.3%, ahead of the CDU on 19% and the far-right Alternative for Germany (AfD) on 16%. It also far outstripped the centre-left Social Democrats (SPD) on 12.1%.

Public Opinion on Housing Nationalisation

In her first remarks after the polls closed, the 45-year-old daughter of left-wing Turkish parents who fled a coup in 1980 said the increasingly difficult rental situation was "the biggest social problem" in the capital.

She promised to proceed with nationalising the housing associations and "drive speculation from Berlin," in accordance with a referendum from 2021 in which 58% backed proposals to legislate for nationalisation.

Financial and Political Challenges

Whether the policy, which would see some 220,000 housing units transferred to state ownership, is ever adopted remains unclear. SPD general secretary Tim Kluessendorf said nationalising the housing associations would cost some €20 billion.

An Infratest Dimap poll also found only 37% of those surveyed were in favour.

Broader Political Context

Rise of the AfD and Shifting Voter Base

Sunday's election in Berlin came on the same day the AfD followed up on its success in the September 6 Saxony-Anhalt election by taking first place in an election in Mecklenburg-Western Pomerania state. It also recorded its best-ever result in Berlin.

But while the AfD has attracted most attention, the Left Party has also benefited from a general turn against the mainstream parties of the centre-left and centre-right.

Economic Factors Influencing the Election

As in the four other state elections held this year, the dire state of the German economy and uncertainty about the way ahead weighed on the election in Berlin, with the main focus fixed on rental costs.

Coalition Prospects and Controversies

Coalition Negotiations

But significant obstacles remain for Eralp.

Both the SPD and the environmental Greens signalled a willingness to join a coalition with the Left Party. But the Greens leader Felix Banaszak said accusations of antisemitism that have been levelled against parts of the Left Party in Berlin had to be addressed for a partnership to work.

Addressing Accusations and Party Stance

"We need a clear commitment to combating antisemitism; otherwise, things won't work with us," he said.

The Left Party rejects accusations of systematic antisemitism, saying it is against all forms of "group-focused hostility" including antisemitism, racism and sexism. It did not immediately respond to a request for comment on Banaszak's demand.

(Reporting by James Mackenzie)

Key Takeaways

  • The Left Party achieved a near doubling of its previous share to 25.3%, leading over the CDU (≈19%), AfD (≈16%), and SPD (≈12%) (apnews.com)
  • Elif Eralp pledged to nationalise approximately 220,000 units via an Anstalt öffentlichen Rechts, funded below market value and refinanced by rent income (abgeordnetenwatch.de)
  • Cost estimates vary widely (≈€8–36 billion), with critics warning of fiscal strain, though Eralp intends to issue bonds and reinvest rental income; legal and political hurdles remain, including antisemitism concerns raised by Greens (n-tv.de)

References

Frequently Asked Questions

What is the Left Party's main campaign pledge?
The main pledge is to nationalise private housing associations in Berlin to address rising rent costs.
Who is the likely new mayor of Berlin?
Elif Eralp, the lead candidate of the Left Party, could become the first mayor of Berlin from her party.
How much housing does the nationalisation proposal cover?
The proposal could transfer around 220,000 housing units to state ownership.
Are there obstacles to the nationalisation policy?
Yes, the policy faces political challenges, costs estimated at €20 billion, and only partial public support.

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