GERMANY Trends and Developments Contributed by: Kevin B. Villwock and Niklas Melljes, BridgehouseLaw Germany
Third, where no international agreement applies, rec - ognition is determined in accordance with German substantive and procedural law, in particular Sections 328, 722, and 723 of the German Code of Civil Pro - cedure (ZPO). Recent Developments Cross-border legal relationships increasingly involve non-EU countries. Due to the limited number of bilat - eral treaties and changing geopolitical circumstances, a growing number of recognition cases are decided under the third tier of the German recognition system. As a result, German courts are increasingly required to assess foreign judgments directly under German law. Recognition within the EU The recognition of judgments rendered in one EU member state and enforced in another member state has become considerably easier as a result of the European Union’s progressive harmonisation efforts over recent decades. The simplification of cross-border recognition within the EU is based on the principle of mutual trust. Mem - ber states presume that the courts of other member states comply with EU law, fundamental procedural guarantees, and common rule-of-law standards. Con - sequently, judgments rendered in one member state can generally circulate throughout the Union without a substantive review of the underlying decision. The principle of mutual trust has led to the abolition of the traditional exequatur procedure and the introduc - tion of uniform jurisdictional rules, standardised cer - tificates, and limited grounds for refusing recognition. In this respect, the Brussels Ia Regulation is of central importance. Pursuant to Article 1 (1), it applies to civil and commercial matters irrespective of the nature of the court or tribunal involved. Matters excluded from its scope are listed in Article 1 (2) and include, among others, revenue and customs matters, matrimonial disputes, insolvency proceedings, succession mat - ters, and certain areas of state liability. Where a judgment falls within the scope of the Regu - lation, such as a judgment ordering payment under a sales contract, a declaration of enforceability is no
longer required before enforcement in another mem - ber state. Instead, the successful party may apply to the court of origin for the certificate provided for in Article 53 of the Regulation. The certificate confirms, among other things, the enforceability of the judgment, identifies the claim that has been adjudicated, and specifies the parties involved. Combined with the judgment itself, the cer - tificate allows direct enforcement against the debtor’s assets located in another member state. As a result, the recognition and enforcement of judg - ments within the European Union have been signifi - cantly simplified. Recognition of judgments from non-EU countries In the absence of an applicable convention, recogni - tion must be assessed under national law. This often raises legal and practical difficulties, particularly with regard to international jurisdiction, procedural fair - ness, and compliance with public policy. At the same time, efforts are being made to simplify the recognition of judgments from third countries. Modernisation of the procedural framework Germany modernised its procedural framework through amendments to the Recognition and Enforce - ment Act ( Anerkennungs - und Vollstreckungsausfüh- rungsgesetz – AVAG), which entered into force in 2024. The AVAG does not substantially alter the substantive requirements for the recognition of foreign judgments. Rather, its primary objective is to establish uniform, transparent, and more efficient procedural rules. In particular, the Act standardises jurisdictional responsibilities, clarifies procedural requirements, and streamlines application procedures. Furthermore, it consolidates procedural provisions that were previ - ously scattered across various statutes and interna - tional agreements. As a result, parties are no longer required to navigate different procedural regimes depending on the appli - cable treaty. Instead, the AVAG provides a largely uni - form procedural framework.
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