GERMANY Trends and Developments Contributed by: Tanja Pfitzner and Fabian von Schlabrendorff, Pfitzner Legal
As a fundamental pillar of any fair and predictable legal system, the rule of law plays a central role in ensuring the legitimacy and effectiveness of arbitra - tion. Arbitration, as a private means of dispute reso - lution, depends on the impartial application of legal norms and the reliable enforcement of arbitral awards by state courts. At the same time, arbitration itself serves the rule of law by providing a neutral forum for resolving disputes – particularly in jurisdictions where state courts may be inefficient, politically influenced or structurally underdeveloped. This contribution is rein - forced by international instruments such as the New York Convention, which obliges contracting states to recognise and enforce arbitral awards, thereby strengthening the global framework for reliable and rules-based dispute resolution. In recent years, however, tensions have increasingly emerged where the autonomy of arbitration conflicts with national political objectives or mandatory legal standards. In such instances, maintaining the deli - cate balance between respecting the independence of arbitration and upholding the rule of law, both in theory and in practice, poses a key challenge. Especially in times of turmoil, it should not be over - looked that arbitration plays a meaningful role in con - flict management and legal stability. The 2025 DIS Autumn Conference – Arbitration: A Bridge over Troubled Waters – will explore the evolv - ing role of arbitration in safeguarding the rule of law amid global disruption and contestation. This day of critical reflection forms part of the Berlin Dispute Resolution Days, held annually in mid-September, and featuring a diverse programme of English-language events with a deliberately international focus. Legislative Reforms The legislative initiative to modernise German arbitra - tion law, which was launched in 2023 and which we reported on in previous editions, unfortunately fell vic - tim to the early federal elections held several months before the end of the regular legislative term in early 2025. Under the principle of discontinuity, all legisla - tive proposals that have not been adopted by the end of a legislative period automatically lapse. The draft reform – widely welcomed by the arbitration commu -
nity – had already reached a very advanced stage and aimed to introduce several amendments to, inter alia, further enhance procedural efficiency and respond to the increasing digitalisation of arbitral proceedings. It now remains to be seen whether the new legislature will take up and continue this important and well- advanced reform project. However, another significant legislative initiative from the previous legislative term has been successfully enacted. The Act to Strengthen Germany as a Forum for Litigation entered into force on 1 April 2025. Draw - ing on many aspects of international arbitration, the Act seeks to modernise and streamline court proceed - ings in complex commercial disputes, both national and international in nature. A key feature of the reform is the establishment of specialised panels for commer - cial matters at the level of both the Higher Regional Courts (Commercial Courts) and the Regional Courts (Commercial Chambers). Importantly, proceedings before these courts may be conducted in English, offering international parties a more accessible forum within the German judicial system. Several Commercial Courts and Chambers have already been established across federal states, staffed by highly qualified and motivated judges. The development of these specialised forums is expected to further strengthen Germany’s attractiveness as a dispute resolution venue and to foster a mutually ben - eficial relationship between arbitration and litigation in the commercial sphere. The Commercial Courts have partly different and very specific areas of focus, with particular regard to the economic profile of its region. The Hanseatic Com - mercial Court in Bremen, for example, concentrates on matters relating to aerospace, civil aviation tech - nology, hydrogen technology, logistics and maritime trade – sectors that reflect the internationally-oriented business landscape of the region. Disputes in these and other emerging sectors – par - ticularly the growing field of space-related disputes – are also expected to feature more prominently in international arbitration. With the increasing number of satellite launches and satellite-based services, space commerce, for example, is expected to rapidly
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