The Legal Affairs Committee of the German Bundestag held a public hearing on 4 December 2024 regarding the draft bill to modernise arbitration law.
Almost all of the invited experts emphasised in their statements that it is of great importance for Germany as an arbitration venue to implement the draft bill into law before the end of this legislative period, otherwise the measure could be dropped and work would have to begin from square one in the new legislature. The rapporteurs of two parliamentary groups signalled that they believe it is still possible for the bill to be passed during this legislative period.
Experts praised the draft and its careful preparation by the Federal Ministry of Justice, with a lively discussion of its proposals, from the freedom of form for arbitration agreements to the interlinking with the Commercial Courts, ensuing. The discussion also focused on regulations on emergency arbitrators and substantive law, in particular the law on general terms and conditions, which has a considerable influence on the attractiveness of Germany as a dispute resolution location.
The DIS welcomes the reform project and has actively supported it. Linked here is a collection of materials on the modernisation of the arbitration law. A statement by expert Reinmar Wolff for the DIS is available here. A summary including all statements and a video recording of the hearing can be found on the Bundestag website.
It is sad that this report does not have a happy ending. The parliamentary groups were ultimately unable to agree to continue working on the bill during the current legislative period. The DIS will continue to advocate for the modernization of German arbitration law after the Bundestag elections.
Reinmar Wolff