The Austrian government could seize the house where Hitler was born from its private owner to keep it from becoming a neo-Nazi shrine.
Attempts to purchase the property in the town of Braunau am Inn have so far failed and the state aims to bring a bitter legal battle over ownership to an end.
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Officials say the state may make an offer of compensation to the current owner after they unexpectedly refused to grant permission for renovations in 2011. A purchase offer from the Austrian Interior Ministry was also rejected and this has sparked a heated debate among the town's 17,000 residents.
Some think the house should become a refugee centre, while others say it should be transformed into a museum dedicated to his liberation and a number believe it should be demolished but as part of the historic centre of Branau, the house is protected by a preservation order.
Interior ministry spokesman Karl-Heinz Grundboeck told AFP news agency: "We are currently examining the creation of a law, which would force a change of ownership and pass the property to the Republic of Austria.