On June 10, 2026, the Federal Government presented a draft of the “Act on the Modernization of Arbitration Law.” Its aim is to adapt the legal framework for dispute resolution through arbitration tribunals to the needs of today. The reform is also intended to increase the efficiency of arbitration tribunals and strengthen Germany’s appeal as a venue for arbitration.
What are the key points of the reform plan?
- Digitalization – Video Conferencing and Electronic Arbitration Awards
- Internationalization – Legal Proceedings in English
- Transparency – Promoting the Publication of Arbitration Awards
Digitization
It is to become easier for companies to enter into an arbitration agreement. To this end, Section 1031(1) of the German Code of Civil Procedure (ZPO) is to be amended. In addition to the written form, this provision currently still refers to faxes and telegrams and is now to be worded in a technology-neutral manner. In the future , “any other means of communication that allows the information to be accessed again at a later date” will be deemed suitable for the valid conclusion of an arbitration agreement. According to the legislative rationale, this refers in particular to agreements concluded via email or text message.
It is also expressly provided that oral hearings in arbitration proceedings may in the future be conducted “via video and audio transmission (video hearings),” unless otherwise agreed (§ 1047(2) ZPO RegE).
Section 1054(1), sentence 2, of the Draft Civil Procedure Code (ZPO RegE) provides that an arbitral award may also be rendered electronically.
Internationalization
With regard to the proceedings before the arbitral tribunal itself, the parties have always been able to agree to use a different language (Section 1045 of the German Code of Civil Procedure (ZPO)).
The government’s draft bill now provides that proceedings in arbitration matters assigned by law to state courts (Section 1062 of the Code of Civil Procedure) may, under certain circumstances, be conducted in English. In such cases, the court would, for example, hear proceedings regarding the enforcement of provisional measures ordered by the arbitral tribunal or the declaration of enforceability of the arbitral award in English.
In principle, this is possible if the parties so agree and if an English-language Commercial Court has been established in the relevant federal state.
Transparency
Section 1054b of the Draft Civil Procedure Code (ZPO RegE) establishes a legal basis for the publication of arbitral awards.
One reason for this is that legal disputes in certain areas are often resolved through confidential arbitration proceedings (for example, corporate law disputes, such as post-M&A disputes, as well as disputes in the construction and energy sectors). There is relatively little established case law on the related issues of substantive law, procedural law, and private international law.
The arbitral award may be published in anonymized or pseudonymized form if the parties consent or, at the very least, do not object within three months. The party is not required to provide reasons for its objection. Without the consent (or silence) of both parties, the award will not be published.
Other changes in the draft bill
Interim measures ordered by an arbitral tribunal may be enforced only if they have been declared enforceable by a court. It is proposed that courts also be able to order the enforcement of interim measures issued by foreign arbitral tribunals, § 1025(2) ZPO RegE. Furthermore, courts will be able to refuse to enforce provisional or protective measures ordered by the arbitral tribunal only if one of the grounds listed in § 1041(2), sentence 3, of the Draft Civil Procedure Code (ZPO RegE) applies. For example, if a corresponding application for interim relief has already been filed with a domestic court.
International Service of Process: In the future , courts in other EU member states will be able to serve judicial documents in Germany via email under certain conditions. This is provided for in the proposed amendment to Section 1068 of the German Code of Civil Procedure (ZPO). Until now, a qualified service provider was required for this purpose.
What the Proposed Reform of Arbitration Law Means for Businesses
The reform of arbitration law brings greater digitalization to Germany as an arbitration center. The option of conducting proceedings in English simplifies arbitration proceedings in international legal transactions. The simplified publication of arbitral awards increases the predictability and transparency of arbitration proceedings. This will strengthen Germany’s position as an arbitration center in the long term.
KPMG Law not only represents parties in arbitration proceedings, but members of the KPMG Law Litigation Team are also regularly appointed as arbitrators.
