Nationalization Law of June 11, 1948 in Romania

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The nationalization law of June 11, 1948 in Romania (Romanian: Legea naționalizării din June 11, 1948 ) decreed the nationalization of all natural resources , industrial , commercial and commercial enterprises including banks , insurers , transport and telecommunications with the aim of a socialist planned economy in the Romanian People's Republic proclaimed on December 30, 1947 .

Preparatory actions

From 1945 to 1948 several measures took place in Romania that introduced the socialist planned economy. One of the first was the land reform of March 23, 1945 . At the national conference in October 1945, the Romanian Communist Party declared war on the “capitalist elements” and private property.

The national bank of the Kingdom of Romania was nationalized by the law of November 20, 1946 . In June 1947, with the adoption of the law to create 14 state industrial administrations, the royal Romanian parliament laid the foundation for the cold nationalization of all medium-sized and large companies. Since then, every industrial and commercial activity of private companies has been directed and controlled by party state officials and union representatives. The currency reform of August 15, 1947 followed. In October 1947, all private companies in industry, trade and transport began to be recorded. A "Nationalization Commission" was established with subdivisions in each county and in each company.

After King Michael was forced to abdicate and leave the country by the ruling Romanian Communist Party and the Romanian People's Republic was proclaimed on December 30, 1947, the Nationalization Law number 119 of June 11, 1948 was passed, which decreed the nationalization of all means of production.

execution

At the plenary session of the Romanian Communist Party from 9-11 June 1948, Gheorghe Gheorghiu-Dej presented the report on the "Nationalization of all companies from industry, banking, insurance, mining, transportation and telecommunications". On June 11, the bill was submitted to the Grand National Assembly for approval. All mineral resources, companies in the heavy industry and the metalworking industry, shipyards, coal mines, oil and natural gas production plants, companies in the food industry were nationalized. The telephone company and broadcasters were also nationalized.

Nationalization in 1948 was meticulously prepared by the Petru Groza government and the party leadership. Nationalization was only made possible by the new constitution . The Romanian Official Gazette "Monitorul Oficial" published the text of the new constitution on April 13, 1948. Article 11 of the constitution stipulated that the state would systematically promote the elimination and liquidation of the “capitalist elements” and, if it was in the common good, nationalize private companies.

The law was practically implemented before it was approved. Nationalization was prepared in detail and in strict secrecy. The companies to be expropriated were recorded in lists that gave information on production, sales, number of employees, and salaries of the directors. The action started on June 11th at 6 a.m. The smuggled party people sealed the company safes at 6 a.m., occupied the offices of the directors and made sure that no files were misappropriated. At 1 p.m., the activists took over management of the company. At 2 p.m., meetings were held across the country in support of the action. While the takeover of the firms and factories was virtually in full swing, the law had not yet been approved. The bill was submitted to the government that morning and then sent to the Grand National Assembly for approval, which approved the bill hours later.

The decree of August 18, 1948, based on Law No. 119 of June 11, 1948, determined the nationalization and liquidation of all joint-stock and private banks . At the same time, the Volksbanks were transformed into so-called credit cooperatives under state control and finally nationalized on March 2, 1951. The state thus dominated the entire banking system . In November 1948 the Romanian National Bank was transformed into the State Bank of the Romanian People's Republic, in which the short-term lending business was centralized, while the investment financing was incumbent on the Investment Bank, which was established in September 1948 on the basis of the National Industrial Company. The Romanian banking system now consisted of three branches: the State Bank, the Investment Bank and the State Savings Bank (Casa de Economii și Consemnațiuni, CEC Bank ).

In November 1948 the movie theaters and hospitals were nationalized. The pharmacies , chemical plants , cultural institutions and private houses of the former company owners were added by 1950 .

Through the Nationalization Act No. 119 of June 11, 1948, a total of 8,894 industrial, banking, insurance, mining, transportation and telecommunications companies were nationalized. The law also provided for compensation. However, that did not happen. After the companies had been confiscated, the hunt for the former owners began. They were arrested and tried in mock trials of sabotage , espionage and other fabricated crimes, imprisoned or deported and all their property, including their owner-occupied homes, confiscated. In the 1950s, the entire political and cultural elite in the country was removed from social life. Very few survived imprisonment. Those who survived lived as tenants in their own home. At most, foreign companies, for which the respective state campaigned, received compensation. In the case of the Swedish match maker, who received compensation after 40 years.

With the establishment of a state planning commission in July 1948, all the prerequisites for a centrally planned and managed administrative economy were met. The process of the socialist planned economy was continued in 1949 with the collectivization of agriculture and ended in 1962.

The role of the press

Communist propaganda played an important role in general opinion formation. Above all the newspaper "Scânteia", the press organ of the Communist Party, gave the other newspapers the direction. The former owners were vilified in the blackest tones and the deeds of the new rulers were glorified. Here are some examples of communist propaganda in the press:

“Our country is beautiful and rich. The working people, however, have so far not been able to enjoy these riches. Until recently, a handful of domestic and foreign capitalists owned the country's riches: rivers, forests, oil, coal and other natural resources. "

An article on the Bucharest Vulcan Works announced:

“Together we will destroy the enemy! At the Vulcan Works, the new director, dressed in a linen shirt and flats, gave a speech. Then the workers understood even better what nationalization means - it means that we will all run the factory from today. Constantin Diaconescu, together with you, all those who identify their life with the lathes and the blast furnaces. Take care, comrades! The whole factory is working for us now. The enemy will try to put obstacles in our way. Anyone who forgets that is just as punishable as the enemy! "

An article on the Prahova Valley said:

“This region is known far beyond its borders. Who hasn't heard of Sinaia, Predeal, Bușteni? All the treasures of this region belonged to the capitalists in the past. Today, however, they belong to the working people. "

Consequences of nationalization

The consequences of nationalization for the country's economy were devastating. If you look at the trade balances of 1948 and 1949, you can see an enormous decline in the volume of trade and stagnation in the country's industrial development. It would be many years before the industrialization of the country had reached the pre-war level again. The year 1938 served as a reference year for the socialist planned economy for a long time.

The official statistics for 1947, the first year of the cold nationalization of the entire industrial apparatus, showed a gross industrial output of only 48% compared to 1938. In relation to the same comparison year (1938 = 100) the total agricultural production reached the index number 59, the yields of the crops only 51, while for the cattle breeding 75 was given.

Web links

Individual evidence

  1. ↑ lege-online.ro , Law 119/1948
  2. ↑ a b c historia.ro , nationalization as a secret
  3. ↑ a b c books.google.de , The Economic Systems of the States of Eastern Europe and the People's Republic of China
  4. ↑ a b c d e romania-actualitati.ro , Naţionalizarea - 11 June 1948
  5. ↑ a b c d e digi24.ro , The planning of nationalization in the communist laboratories
  6. ^ Books.google.de , Ursula Fox: The banking of the European people's democracies
  7. ↑ a b hotnews.ro , June 11th - 65 years since nationalization
  8. ↑ iiccr.ro  ( page no longer available , search in web archives )  Info: The link was automatically marked as defective. Please check the link according to the instructions and then remove this notice. , June 11, 1948 - Legea no. 119 pentru naţionalizarea întreprinderilor@1@ 2Template: Dead Link / www.iiccr.ro