Definition and Legal Foundations of the Federal Agency for Special Tasks Arising from Unification (BvS)
Die Federal Agency for Special Tasks Arising from Unification (BvS) is a legally capable institution under public law within the portfolio of the Federal Ministry of Finance of the Federal Republic of Germany. It was established effective January 1, 1995. The BvS is primarily responsible for tasks related to German reunification, particularly for the administration, exploitation, and liquidation of the remaining assets of the Treuhandanstalt (“Treuhand assets”). In addition, the BvS undertakes tasks in asset liquidation, restitution, and post-privatization support.
The legal basis is provided by the Act on the Transfer and Liquidation of the Tasks of the Treuhandanstalt and the Federal Office for Unresolved Property Issues (Treuhandanstalt Liquidation Act – THAA) of August 9, 1994 (BGBl. I p. 2062), as well as the Federal Agency for Special Tasks Arising from Unification Act (BvSG) of June 16, 2000 (BGBl. I p. 955). Further supplementary regulations arise from the Unification Treaty, the Property Act (VermG), the Investment Priority Act (InvVAG), and other specific provisions under the framework of the Treuhandanstalt liquidation.
Historical Background and Founding
With German reunification in 1990, it became necessary to clarify, according to the rule of law, the extensive asset matters of the former publicly owned assets of the GDR and to privatize them economically. This role was performed by the Treuhandanstalt from 1990 onward. After its dissolution on December 31, 1994, the Federal Agency for Special Tasks Arising from Unification was established to take over and continue the remaining, unfinished tasks. At the same time, the Federal Office for Unresolved Property Issues (BAOV) was incorporated into the BvS.
Tasks and Responsibilities
The BvS has a legally defined range of tasks:
Asset Administration and Disposal
The Federal Agency is the legal successor of the Treuhandanstalt and manages the remaining assets after privatization (“residual assets”), sells them, and transfers the revenues generated to the federal budget. This includes:
- Real estate and land
- Equity holdings
- Rights, claims, and other assets
The BvS is authorized to commission suitable third parties, in particular TLG Immobilien Management GmbH or Treuhandliegenschaftsgesellschaft mbH, with the administration and disposal of the assets in order to fulfill its tasks.
Settlement of Remaining Restitution and Investment Priority Proceedings
The BvS carries out pending restitution proceedings under the Property Act (VermG) by processing or compensating claims for re-transfer by former owners. It also handles pending investment priority proceedings under the Investment Priority Act.
Contaminated Site Management and Warranties after Privatizations
The agency handles post-privatization tasks, in particular:
- Monitoring and securing the fulfillment commitments of former investors (e.g., job guarantees)
- Remediation of contaminated sites and legacy liabilities from privatizations
- Legal issues regarding claims for repayment in case of breaches of contract
Claims Processing and Legal Disputes
The BvS is a party in numerous civil and public law proceedings concerning rights and obligations in connection with privatization and asset liquidation. In these matters, it represents the federal government vis-à-vis third parties and enforces claims.
Organization and Legal Form
Legal Form and Supervision
The BvS is a legally capable institution under public law at the federal level. It is subject to the legal and technical supervision of the Federal Ministry of Finance. The Federal Agency acts through a president and is overseen by a supervisory board.
Procedural Particularities
Special procedural rules apply to the fulfillment of its tasks:
- Resolutions of the supervisory board require approval by the Federal Ministry of Finance.
- For sovereign activities, the provisions of the Administrative Procedure Act apply accordingly; for activities under civil law, general civil law applies.
Liquidation and Termination of the BvS
Completion of the Statutory Mandate
As the liquidation of Treuhand assets progresses, the tasks of the BvS steadily decrease. The law for the termination of the BvS is intended to conclude all tasks and liquidate the institution. After the completion of all its duties, the Federal Agency is to be dissolved and the remaining area of responsibility transferred to federal authorities.
Significance and Legal Policy Classification
The BvS is a central instrument in the German unification constitutional practice. It ensures the orderly and lawful settlement of formerly publicly owned assets and thus plays a key role in the transformation process following reunification. Its activities are of considerable importance for historical justice and legal certainty in relation to the settlement of asset claims and restitution proceedings.
Overview of Statutory Foundations
- Treuhandanstalt Liquidation Act (THAA)
- Act on the Federal Agency for Special Tasks Arising from Unification (BvSG)
- Unification Treaty
- Property Act (VermG)
- Investment Priority Act (InvVAG)
- Other federal legal regulations and subordinate administrative provisions
References
- Dieter Birk (ed.): Die Privatisierung des DDR-Volksvermögens und ihre Folgen, Münster 2000.
- Dirk Markus: Restitutionsverfahren im Einigungsrecht: Rechtssicherungsinteressen und Abwicklungspraxis, Berlin 2004.
- Federal Law Gazette, references to THAA and BvSG.
Web links
- Official website of the Federal Agency for Special Tasks Arising from Unification (BvS): www.bvs-bund.de
- Text of the Treuhandanstalt Liquidation Act (THAA)
By ensuring the proper settlement of post-reunification assets and restitution proceedings, the Federal Agency for Special Tasks Arising from Unification makes an important contribution to the economic and legal consolidation of asset issues originating from German reunification.
Frequently Asked Questions
Which legal framework governs the transfer of tasks to the Federal Agency for Special Tasks Arising from Unification?
The tasks of the Federal Agency for Special Tasks Arising from Unification (BvS) are largely governed by the Act for the Final Fulfillment of the Tasks of the Treuhandanstalt existing as of December 31, 1991, as well as the Establishment of the Federal Agency for Special Tasks Arising from Unification (the so-called Treuhand Closing Act, THA-AbschlussG). In addition, the Unification Treaty Act and various specific regulations such as the Property Allocation Act (VZOG), the Old Debt Relief Act, and further federal and state law regulations, particularly regarding public property law and restitution law, also apply. Thus, the activities of the BvS are subject to a complex network of differentiated requirements, including both specific succession rules for the former Treuhandanstalt and general administrative regulations for federal agencies. In addition to statutory mandates, European legal requirements, in particular state aid provisions, must also be considered, insofar as the settlement of economic enterprises and the administration of assets have potential impacts on the EU internal market.
What are the obligations of the BvS as a legal entity under public law when dealing with restitution claims?
According to § 5 THA-AbschlussG, as a legal entity under public law, the BvS is obliged to process restitution claims in accordance with the Property Act (VermG) and supplementary regulations such as the Compensation Act (AusglLeistG) and the Nazi Persecution Compensation Act (NS-EntschG) in a legally secure, prompt, and transparent manner. Its main obligations include comprehensively informing claimants, accepting applications, and carrying out the re-transfer process or any compensation payments in strict compliance with statutory procedures. In this capacity, the BvS acts as a so-called asset allocation authority. It must ensure compliance with timing requirements, the participation rights of third parties, procedural guarantees, and judicial review. Incorrect decisions can be challenged by administrative recourse, with the BvS subject to unrestricted judicial scrutiny.
To what extent do supervisory obligations over the BvS exist on the part of the federal government?
The Federal Agency for Special Tasks Arising from Unification is subject to the legal and technical supervision of the Federal Ministry of Finance (BMF) according to § 6 THA-AbschlussG. This supervision extends both to compliance with statutory provisions and to proper management in the sense of efficient use of federal funds. The BMF is authorized to issue instructions, request information, initiate business and financial audits, and exercise co-determination rights in individual cases. The BvS is obliged to maintain comprehensive records and reporting to the supervisory authority. For special tasks, interministerial coordination mechanisms can also be implemented, especially if the agency is addressing specific asset interests of other ministries or is working within the context of overarching restitution arrangements.
What is the procedural status of the BvS in administrative and court proceedings?
In administrative proceedings, the BvS acts as the decision-making authority, typically within the framework of the Administrative Procedure Act (VwVfG) as supplemented by special rules from the THA-AbschlussG and the VZOG. It issues formal administrative acts, which form the basis for asset allocations, restitutions, or compensation. Those affected by BvS decisions generally have access to administrative legal remedies, and the institution is then a defendant or party to the process. In legal disputes, BvS administrative acts enjoy the presumption of legality in principle, but are nonetheless fully subject to judicial control in accord with administrative procedural law (§§ 40 ff. VwGO). Issues of appellate law, where of fundamental significance, are decided by the Federal Administrative Court.
Are there special liability provisions for the BvS regarding its administrative activities?
The BvS is liable in accordance with the general principles of state liability law for breaches of official duty under § 839 BGB in conjunction with Art. 34 GG. Unlike in civil law, specific requirements of public service law must be observed: personal liability of officials only arises in cases of intentional or grossly negligent breach of official duties; otherwise, the institution itself or the federal government as the legal entity is liable for damages caused by misconduct of its employees. Liability may also arise in connection with the administration of trust assets or in the event of restitution decisions, provided culpable breaches of duty are established.
What data protection requirements must BvS meet when handling personal data?
As a federal authority, the BvS is subject to the provisions of the EU General Data Protection Regulation (GDPR) and the German Federal Data Protection Act (BDSG). This means that any processing of personal data — particularly of applicants, former employees, or other affected parties — is bound by the fundamental principles of lawfulness, transparency, purpose limitation, and data minimization. The BvS is required to maintain internal data protection processes, implement technical and organizational measures pursuant to Art. 32 GDPR, safeguard the rights of data subjects to information, correction, and deletion, and, where necessary, conduct data protection impact assessments. Violations may result in supervisory measures or fines.
What role does public budget law play in the asset management of the BvS?
The BvS is bound by the regulations of the Federal Budget Code (BHO), in particular its requirements for efficiency and economy (§ 7 BHO). In managing or disposing of trust assets or restitution assets, it must observe budgetary principles, maintain proper records of income and expenditures, conduct procurement and sales transactions transparently, and have its budgetary management regularly audited. Individual transactions — for example, major real estate sales — often require supervisory approval or notification to the BMF. Internal and external audits check compliance with budgetary regulations.
