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Halle's housing workers protest €21M budget cut threatening rents and jobs

A united front of workers and executives fights back as Halle's budget cuts risk destabilizing affordable housing. Will other cities follow this controversial path?

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2 min read
The image shows a large group of people walking down a street, holding banners and placards with...
The image shows a large group of people walking down a street, holding banners and placards with text on them. On the right side of the image, there are trees and buildings with glass walls, and on the left side there are vehicles on the road. There are also poles and sign boards with text, indicating that this is a protest in Hong Kong.

Halle's housing workers protest €21M budget cut threatening rents and jobs

Loud Protests Outside City Hall: Municipal Housing Staff Take to the Streets

Employees of Halle's municipal housing companies HWG and GWG staged a noisy demonstration outside city hall to protest the local government's financial plans. As part of its budget consolidation efforts, the city intends to extract an additional €21 million from the two firms—a move that has sparked fierce resistance from experts and affected workers alike. Over the past years, the housing companies have already contributed €180 million to the city's coffers.

Holding signs with slogans like "Profit transfers = rent hikes,""We fear for our jobs,""Your greed is ruining us," and "We don't want another Südpark," employees voiced their anger. Beyond job security concerns, they warned of severe repercussions for tenants across Halle. Among the demonstrators were high-profile figures including Stadtwerke CEO Matthias Lux, GWG head Jana Kozyk, and HWG chief Simone Danz.

"The €21 Million Simply Doesn't Exist"

The protesters received backing from a prominent voice: Jens Zillmann, director of the Sachsen-Anhalt Association of Housing Companies (VdW), sharply criticized the city's approach in an interview. "This additional €21 million payout simply isn't there," Zillmann stated. "It cannot be generated under the socially responsible rent policies of HWG and GWG."

He cautioned that such withdrawals would undermine the companies' long-term financial stability. To meet the city's liquidity demands, the firms would have only three options: slashing investments, raising rents, or selling off properties.

Criticism of the Root-Cause Analysis

Zillmann was particularly scathing about the city's decision to comply with demands from the state administrative office without addressing the deeper causes of its budget deficit. He pointed out that roughly €120 million had already been siphoned from the housing companies in recent years—yet no sustainable improvement in the city's finances was visible.

A Warning for All of Sachsen-Anhalt

For Zillmann, the dispute in Halle carries implications far beyond the local level. He fears it could set a dangerous precedent for the entire state:

  • Precedent risk: If Halle succeeds with this model, other municipalities in Sachsen-Anhalt might follow suit, balancing their budgets at the expense of housing companies.
  • Lack of funding: Zillmann slammed the state government for allocating "exactly €0" to housing subsidies in recent years, even as demands for energy-efficient and demographic-adapted renovations grow.
  • Social consequences: Ultimately, he argued, tenants—many of whom are already financially vulnerable—will bear the brunt. "It's unacceptable for HWG and GWG tenants to foot the bill for the failed fiscal policies of the federal and state governments," Zillmann declared.

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