In the absence of a clear solution to this problem, the restitution of state-owned properties is again high on the agenda of the Romanian authorities in Bucharest. These days the Romanian Government is discussing a new draft law and has apparently worked out a solution. All former owners of properties confiscated by the communist regime who cannot be paid in kind will be handed out points with the reference value of 1 Leu, the national currency, proportionate to the value of the property, which they can subsequently use to buy properties and farmland auctioned off by the state.
If property owners do not spend the points within three years of having been handed over the compensation ruling, although they took part in at least three auctions, the points can be transformed into currency, within the limit of 10% of the overall amount. Romanian Prime Minister Victor Ponta wants his Cabinet to assume responsibility over the project, which involves seeking a vote of confidence in Parliament, which would thus solve a problem that has been left pending since 1991.

Victor Ponta: “I want to turn the final page of this chapter in the Romanian history on March 19, and I hope this will go through, in the most equitable way possible. It is the first time that I make use of this constitutional tool and I do not plan on doing it again over the next period. I want you to know that I want all political parties involved to take responsibility for this decision”.

Governments after 1991 adopted a long string of laws, neither of which was however coherent enough or grounded on a long-term strategy. In most cases, the legislation was found wanting in terms of implementation standards, lacking key elements, and ended up being modified. The poor management of the restitution issue came at a price which eventually inflicted on regular taxpayers, who continue to stand up for their rights. According to official estimates, the state still needs to pay damages to thousands of people, with sums standing at some 16 billion euros.

The Government says Romania has already paid compensations worth 5 billion euros in the form of Property Fund shares, which has significant investments in key businesses in the energy sector. Nevertheless thousands of complaints have been filed at the European Court of Human Rights, which has given Romania until the end of April to come up with a coherent legislation in this field. Failure to comply will determine the Court to give rulings in all court cases, forcing the Romanian state into paying huge damages.

Meanwhile, influential business people, crime lords and even politicians have “taken over” the compensation process, making a fortune from selling out contentious properties and Property Fund shares. The restitution of properties in Romania has become the most ineffective and costly as compared to other East-European countries. Romania is currently the only country in the former communist block where this process is still unfolding. Source; Radio Romania International