Gov't moves to unblock compensation procedures for properties seized during communist era

The restitution process for properties seized during the communist era was unblocked, as the government adopted an Ordinance that resumes the compensation procedures which had been halted following the Constitutional Court's ruling of February 2025, Finance Minister Alexandru Nazare announced on Friday.

"The respective Constitutional Court ruling had removed the legal framework for assessing compensation in cases where the properties can no longer be returned in kind. (...) What is new in this legislative amendment: a fair calculation of compensation, based on the notary appraisal grid and correction coefficients (location, condition, legal regime), according to the ECHR - regardless of how the property was used at the time of confiscation (e.g. home, urban land plot etc.). Flexible payment options: 7 annual installments instead of 5, or a single payment of 40% for those who renounce the phased-out payment. Reducing litigation and speculation: limiting gains for point buyers, so as to discourage speculative trading of disputed rights. Transparency: all institutions shall report the status of these files to a single national database," the Finance minister said on Friday in a Facebook post.

He added that, this way, international sanctions and lawsuits are avoided by harmonizing the legislative framework with European standards (ECHR) on human rights.

"Between 2013 - 2025, the Romanian state determined compensations worth RON 23.2 billion in 67,500 cases, of which RON 16.1 billion have already been paid, and RON 7.5 billion are to be disbursed in installments until 2029. By extending the payment period to 7 years we reduced the budgetary pressure and also streamlined the process. An essential measure is the limitation of the amounts owed to point buyers: out of an estimated total of RON 1 billion, the state will pay only RON 0.45 billion, thus saving the budget over 50%. After 2021, the average amount of compensation increased by 160% per case (from an average RON 213,000 to RON 555,000). All these elements called for fairer criteria, but also for increased financial sustainability. Resuming the restitution process with clear rules, compliance with international standards and fairness for all those who were wronged is an important step towards the correct closure of this painful chapter in Romania's history," Alexandru Nazare also wrote.