Important Steps Towards The Modernisation Of Arbitration Law In Germany

On 1 February 2024, the German Federal Ministry of Justice (Bundesministerium der Justiz, BMJ") presented a ministerial draft bill on legislation for the modernisation of arbitration law (Gesetz zur Modernisierung des Schiedsverfahrensrechts, the Draft Bill").¹ Following last year's publication of the key issues paper (link to our article²), an important step has been taken towards the implementation of the proposed reform.

The Draft Bill should be viewed in conjunction with the 2023 draft of the Legal Venue Strengthening Act (Justizstandort-Stärkungsgesetz).³ Similarly to this, the Draft Bill aims to make Germany a more attractive location for international and large-scale commercial disputes. The BMJ recognises the im-portance of implementing a reliable legal framework for efficient dispute resolution tailored to the practical needs of the business community as a key location factor. In this context, proceedings in state courts and arbitration – correctly – are