This article studies comparatively the property restitution policies of Eastern and Western Balkan countries, focusing mostly on internal and external constraints to a permanent solution. The role of the European Court of Human Rights is analyzed in depth, as well as the subtle shift of policy of the EU institutions from the earlier Eastern Balkan accession to the Western Balkans one. While the situation of property restitution in South-Eastern Europe provides clear evidence that Europeanization helps transformation, particularly if the EU openly assumes the role of a transformation agent, it also highlights the limits of its power.