GREECE Trends and Developments Contributed by: John Dryllerakis, Claire Sergaki and Vasileios Plakoulas, Dryllerakis Law Firm
legislative framework for alternative forms of dispute resolution. Foreign direct investment (FDI) and arbitral disputes FDI is undeniably a crucial pillar for Greece’s econ - omy. Greece’s FDI inflows have surged dramatically, leaping from EUR2.5 billion in 2016 to an impressive EUR6.7 billion by 2024. Remarkably, FDI climbed by 37% in the past year alone, underscoring the coun - try’s growing appeal to international investors. Greece recently adopted Law 5202/2025 to align with EU Regulation 2019/452 on the screening of FDI for the protection of national security and public order (“FDI Screening Law”). The screening regime applies to FDI in sensitive sectors (eg, energy, transport, health, information and communication technology) and highly sensitive sectors (eg, national security, cybersecurity, AI, port and critical submarine infra - structure) when certain ownership thresholds are surpassed. The FDI Screening Law regulates invest - ments by non-EU individuals or entities, as well as EU-based entities controlled directly or indirectly by non-EU parties, including governments or armed forc - es. All qualifying FDI must be notified to the Ministry of Foreign Affairs for approval. Non-compliance with this regime may lead to restrictive conditions, reversal of the investment transaction or even its prohibition, whilst administrative penalties may also apply. The FDI Screening Law is likely to trigger disputes in both the investment and commercial arbitration spheres. On the investment side, the screening mech - anism may conflict with protections granted under Greece’s Bilateral Investment Treaties (BITs), poten - tially leading foreign investors to initiate claims against the Hellenic Republic. On the commercial side, the notification and approval requirements set by the FDI Screening Law will become conditions precedent in many M&A transactions. Failure to meet these condi - tions or any subsequent reversal of investment trans - actions may give rise to claims, which will likely be resolved through commercial arbitration proceedings. Energy arbitration In recent years, Greek energy companies have been steadily shifting towards renewable sources, investing
heavily in green technologies and infrastructure. This green transition is reflected in the growing number of acquisitions of photovoltaic parks and wind farms, involving substantial capital as well as complex con - tractual commitments. However, regulatory changes worldwide – particularly in the United States – evidence a renewed emphasis on traditional energy resources and have threatened the further development of green energy portfolios. In Greece, renewable energy investors are also fac - ing new challenges, including unexpected licensing delays, rising costs and legal unpredictability, which, in some cases, may even lead to project cancellations. This environment of uncertainty has increased the risk of disputes, particularly over delayed performance, financial losses or breach of contract. Contractual obligations under Development Services Agreements (DSAs) or Power Purchase Agreements (PPAs) tied to strict project timelines and financing conditions are proving increasingly difficult to fulfil. As a result, parties are turning to arbitration to resolve claims for compensation. Consequently, energy arbitration in Greece is steadily on the rise. Lastly, it is notable that Greece has its very own per - manent body for the arbitral resolution of energy dis - putes. The Regulatory Authority for Energy, Waste and Water (RAEWW) adjudicates and settles the following disputes: • those involving entities in the energy sector; • those involving companies engaged in energy activities and their customers; • any dispute arising from the application of national and European legislation; • disputes between water services providers; • disputes between providers of water services and their clients; and • disputes between solid waste management bodies and local government organisations. Environmental, social and governance (ESG) in arbitration ESG issues have rapidly moved to the forefront of the international arbitration landscape.
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