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Government housing policy defeated in Chamber, Paternalist rebels celebrate
Aachen, Oesteuropa
By Carolina Habeler
Aachen, Oesteuropa
By Carolina Habeler
Giesing, the suburb at the center of a housing code dispute
It was one of Chancellor Strass' flagship policies for the country post-Covid. After the resignation of Chancellor Kollek and Strass' ascension to power, it became apparent that housing was one of those unavoidable issues. And yet, Strass won a comfortable majority without even addressing it in his first two years of government. But now as youth protests break out once more across Oesteuropa, the KVP government had to act. With the aim of boosting housing supply to halt the rapidly rising housing costs, the Strass government launched a program which would completely slash building regulations, zoning laws, and taxes. But critics said that this was just a continuation of the policy that Kollek instituted in 2005, which only resulted in the emergence of for-profit student housing companies and a surge in rental properties. For those seeking to own their own home, it is harder than ever and there is scant evidence that the Kollek-Strass reforms will solve this issue. Nevertheless, Strass' defied his critics and put the Housing Act 2022 before the Chamber of Representatives. In a massive rebellion, 111 KVP Representatives, almost entirely of the "Paternalist" faction, sided with the Imperial & Royal Opposition in a 387-313 vote.
Strass predicted that even with the dissent of some Paternalists, the support of the liberal Centre for Europe party would be enough to secure the bill a majority. But then steps in Jakob Amstutz. Amstutz was only elected to his seat in southern Munich in 2013, before becoming Minister for Housing in 2020. A lifelong local of the suburb of Giesing, Amstutz taught Politics and Economics at the University of Munich for a decade with a focus on housing & development, the subject he wrote his Masters thesis and Doctoral dissertation on. It was no surprise that when Strass announced a government shakeup following the 2018 election to prioritise youthful leadership that Amstutz would be one of the names at the top of the list, and he was appointed Deputy Minister of Housing. The resignation of Lisa Wimmer shortly before the Covid-19 pandemic meant that he would ascend to the position at the age of just 44.
It's only natural then that Amstutz, a resident of Giesing, a suburb affected horribly by housing prices, would have a lot to say on this matter. As Housing Minister he privately rallied against the plans, promoting a greater role for the national government in subsidised housebuilding and the introduction of property expropriation in the interest of the common good. He became a leading figure of the party's Paternalist faction as the debate raged on, but Strass pushed his plans through regardless. Amstutz joined student protests in Munich, Vienna, Cologne, and Aachen in opposition to the program.
It is safe to say that Strass was not expecting such a defeat, but what happens now? Party insiders have suggested that a scaled down alternative that includes subsidies for house building in the worst affected localities could be proposed, a sort of compromise between Strass and moderate Paternalists. But when asked about this, Amstutz rejected such a proposal. The dispute between internal factions has been raging on since the beginning of modern, post-Dominican Oesteuropa, but it's only in recent times that Paternalists have grown to become so prominent. Inspired by Emperor Dominic-Maria's hands on approach to development, the Paternalists are Oesteuropa's "Red Tories". Socially and culturally conservative, but economically populist. Amstutz now chairs a leading Paternalist think tank, the Institute for Reforming Policy, who some say are attempting to overthrow Strass. It should go without saying that if the Chancellor is unable to pass his Housing Act, be it in its present form or a toned down alternative, his entire government will be in trouble. The next election is less than a year away, but there is plenty of time for a Paternalist coup in the KVP.
While much focus is on housing policy itself, it is important to recognise the political significance of a government flagship policy being defeated by rebels comprising almost a third of their Chamber caucus. With the government neck and neck with the SDAP in the polls, Strass' instability to command his own party does not send a good message to the electorate. On the contrary, a Paternalist coup could just be what the KVP needs as leading Laissists retire ahead of the 2023 election.
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