Germany pushes forwards with arbitration law reform

Dr Sandra Gröschel and Anna Vollmer of Pinsent Masons were commenting as the government proposed draft legislation to modernise the country’s arbitration law.

The draft law was unveiled by the German Federal Ministry of Justice and Consumer Protection on 27 January and continues recent attempts by the German legislator to make the country an attractive place for arbitration and dispute resolution more generally.

The government passed a previous iteration of the draft law in 2024, but efforts to implement statutory changes for modernisation were ultimately thwarted by a change of government in 2025. If passed, the proposed draft law will mark the most significant update to German arbitration law since 1997.

The draft law proposes that an arbitration agreement shall be concluded in writing or through any other means of communication that permits access to the inherent information at a later point. It also implements new rules for the nomination of an arbitrator in cases of joinder of parties. To facilitate oral hearings, the draft proposes to conduct hearings with means of video conferencing unless the parties explicitly stipulated otherwise.

Under the proposals, all arbitral awards and dissenting opinions provided by arbitrators will be subject to publication provided that the parties agree. The parties’ consent to publication shall be deemed granted after three months from notification of the consequences of publication by the arbitral tribunal. To preserve the confidentiality of arbitration proceedings - one of the strongest advantages over state court proceedings - the draft only provides for anonymised publication.

Parties will also be able to bring English documents to German courts deciding in matters related to arbitration, such as recognition and enforcement proceedings. 

It will also be possible to render arbitral awards digitally in the future, marking a significant step towards modernising the country’s existing arbitration framework.

Commenting on the proposals, Dr. Sandra Gröschel, a Munich-based arbitration expert at Pinsent Masons, said: “Digitisation of arbitration proceedings ensures fast, smooth and cost-efficient proceedings with international parties. The option to have arbitration awards published could promote transparency and development of law. All in all, this will strengthen legal certainty.”

However, she warned that any further digitisation of procedural law would also require an eye on short-term developments in arbitration law to ensure the country retains and strengthens its position as an attractive seat for domestic and international arbitration proceedings. “Arbitration complements ‘traditional’ court proceedings which are being modernised by the German legislator,” said Gröschel. “This vital option of alternative dispute resolution should therefore not lag behind.”

The draft law is expected to make arbitration law more relevant in drafting contracts, especially in long-term contracts or large-scale projects regardless of the sector and industry, making the changes relevant to many different businesses potentially facing or deciding to go to arbitration in the country.

Anna Vollmer, a dispute resolution expert at Pinsent Masons, added: “Arbitration institutions constantly update their rules according to the development of law and amendments in European member states. Additionally, the German arbitration landscape has gained valuable experience in applying the set of arbitration laws, which was completely modernised almost 30 years ago. This wealth of experience shall be reflected in the future law.”