The German Cabinet approved a draft law on June 10, 2026 to modernise the rules governing arbitration proceedings (Schiedsverfahrensrecht). The draft law amends the Code of Civil Procedure (Zivilprozessordnung, ZPO). Federal Justice Minister Stefanie Hubig proposed these changes.
NOTE: This is a cabinet draft (Kabinettsbeschluss). The Bundestag vote is still pending. Further changes are possible before the law enters force.
Arbitration (Schiedsgerichtsbarkeit) is a form of alternative dispute resolution. An arbitral tribunal decides a dispute between parties. The tribunal’s decision is called the arbitration award (Schiedsspruch). It is binding on both parties in the same way as a state court judgment.
The arbitration law reform covers four key areas.
Flexible form requirements for arbitration agreements
Arbitration agreements (Schiedsvereinbarungen) no longer need to be concluded in writing. They can also be made in other forms, including digital text form (e.g., by email, electronic contract). This aligns German law with international arbitration practice and the way businesses actually operate.
Video hearings and electronic awards
Video hearings conducted by arbitral tribunals will be explicitly permitted by law. Electronic arbitration awards (Schiedssprüche) will also be legally valid. These were already used in practice but were not clearly stated in the ZPO. The reform removes that legal ambiguity.
English-language proceedings before state courts
Arbitration disputes sometimes reach German state courts, for example in proceedings to enforce or challenge an award. Parties in these cases will be able to submit documents in English. Under specific conditions, the entire court proceeding can take place in English. This is a significant change for international companies and expats involved in cross-border commercial disputes.
Publication of arbitration awards
Publication of arbitration law decisions will be actively encouraged. Awards can be anonymised or pseudonymised before publication to protect confidential business information. Publishing more decisions is intended to increase the visibility and influence of German arbitration case law internationally.
Clearer enforcement of interim measures
The draft also introduces clearer rules on enforcing interim measures issued by arbitral tribunals. This ensures parties can rely on such orders having real legal effect. This is important when a dispute requires urgent action while the main proceedings are still ongoing.
Why Germany is pushing this arbitration law reform
Germany is positioning itself as a competitive international arbitration forum. The reform builds on the Commercial Courts introduced in 2025 as part of Germany’s state court system. Commercial Courts already allow English-language proceedings in commercial cases. This reform extends that international-friendly approach to arbitration proceedings that intersect with state courts.
A previous version of this reform was drafted in the last legislative period. However, it could not be completed before that Bundestag dissolved early. The new draft is substantially the same, with some further developments.
