This is not a fun, happy book, and it doesn't end with a sense of fairness or justice. Why is that the case? Perhaps the answer lies in the autobiographical aspect of the novel. Although the novel is considered fiction, it is also considered to be a reflection of real life events of the author. Also, the narrator never receives a name from the author, so the reader is probably supposed to make that assumption by design.
By looking at the real situation, we can see that the novel has an unhappy ending because the story itself was brutal and horrifying. To be persecuted by one's government is certainly one of the most paranoid, panic-inducing experiences on the earth, and the characters in this novel suffer from direct persecution for years. Many of the narrators friends commit suicide, but she can't help but wonder if the government was involved in those suicides. However, there can be no telling, because as Lola's story demonstrates, the paranoia of being in her corrupt environment was enough to drive her crazy. Lola was having sex with random strangers because the humiliation and powerlessness helped her deal with the horror of her corrupt government and the shame of her subordination to that government. When Lola dies, it seems to be a genuine suicide from those aspects of her story.
But that isn't necessarily a full explanation. Another of those friends is later hanged as well, and the question is the same—was this really a suicide? Georg leaves Romania to Frankfurt, but then strangely, he is found dead—an alleged suicidal jump from his hotel window. Slowly the novelist starts to realize that there is more going on than just mental illness. Perhaps there is government involvement. She suspects this especially when Tereza seems to be wearing a wire. Tereza represents the suspicion the narrator develops in regard to the government.
