President Traian Basescu refused to sign the bill and said confiscated properties must continue to be returned to their owners. After Communism ended in 1989 many such properties were sold by the state to tenants, although the previous owners had requested their return.
It was the start of a long term struggle that continues to affect property ownership in Romania today. Tenants who bought these properties tried to fight back but lost their ownership right in court.
Perhaps more important for those wishing to buy pre-Communist property as an investment, Basescu said he would not tolerate a change in the law because it only helps those who want to make money from real estate.
He was accused of effectively threatening those living in these kinds of properties with being thrown out. But he said property must be returned to its rightful owners and the Government would build new apartments for those left homeless.
The new law would have allowed property to be sold even if under dispute. It also said that tenants-turned-owners should receive compensation at current property market prices, a provision Basescu said was unfair as the properties were bought from the state at low prices.