ABSTRACT
This chapter demonstrates how Germany has attempted to overcome the many problems of privatization and restoration of ownership to those whose property was expropriated by the previous regime. It outlines the general plan for the transformation of the former East Germany to a West German market economy, and the fundamental role of the Treuhandanstalt. The chapter describes various problems the Treuhandanstalt initially encountered under the privatization plan. It examines attempts to modify privatization efforts in light of the problems. Caught between the conflicting needs to provide housing and promote economic recovery on the one hand, and to restore the individual's right to property on the other, the unified Germany is confronted with some hard choices. Economic recovery does not depend on all real estate and business ventures having new investors. Public need for land and buildings is also protected by law on investment, the Investitionsvorranggesetz.
