1.14 Institutional framework and work procedures in Hungary

custody by various sectoral or functional ministries. As indicated previously, mandatory established committees in each key stakeholder and mandatory negotiations were the pivotal elements of the transfer/takeover framework and procedures in Hungary (figure 1.14).

In Hungary, the key attributes were (1) all assets and liabilities were transferred by the power of the law; (2) asset and liability transfer committees were established in all ministries and local governments; (3) local governments had to identify, list, and analyze disputed assets or liability cases and initiate dispute resolutions with respective ministries through the committees; and (4) local governments had to report and submit for verdicts failed resolution cases to the interior ministry, the governing body over the local governments.

Agreements were reached relatively easily, but appeals were also possible and happened in a noticeable number of cases, mostly regarding valuation, liability takeover, or compensation for the transfer of public companies. The interior ministry assessed appeals and issued verdicts to resolve disputes and close the cases. Court procedures were also possible but rarely used in Hungary.

In Poland, the asset transfer framework combined elements of both centralized and decentralized models. It was centralized for local entities in each region and decentralized at the national level. Regional offices of the central government and the chiefs of regions (voivods) played pivotal roles in asset transfer (figure 1.15). They approved the lists of assets to be transferred to the new municipalities and represented the state in appeals cases. When negotiations failed to reach mutually acceptable conditions and final agreement, the voivod forwarded the cases to the supreme court for final verdicts, which were mutually accepted. Many private citizens appealed, claiming private ownership of land or buildings since before World War II. These appeals often reached court, and some took years to conclude.

FIGURE 1.14

Institutional framework and work procedures in Hungary

MinistryofInterior verdict Failed cases reported

Committees in ministries Committees in ministries Committees in ministries

Negotiations

Committees in municipalities for dispute resolution andappeals

Source: Based on Peteri 2003. Note: Green arrows indicate negotiations; orange arrows indicate submission of failed cases to the Ministry of Interior; red arrows indicate verdicts.