What are the main changes to Italy's civil litigation rules in 2026?

The principal changes stem from Legislative Decree No. 211/2025, which introduced stricter preclusionary deadlines, streamlined first-instance procedures, enhanced provisional-measure tools for creditors, compressed appellate timelines and expanded digital case-management requirements. These procedural amendments are complemented by the constitutional referendum of March 22–23, 2026, which reformed judicial governance and judge-assignment mechanisms, as detailed in the official civil justice reform page published by Italia Domani.

What immediate steps should banks take with distressed borrowers?

Banks should audit all active enforcement proceedings, verify the perfection of every security interest and collateral registration, update workout playbooks to account for the compressed timetables, and conduct a case-by-case assessment of whether to accelerate enforcement or support the borrower’s restructuring under the CCII. Loan covenants should be reviewed and, where necessary, amended.

Are third-party litigation funders allowed in Italy after the reform?

Italy does not have a comprehensive statutory regime for third-party litigation funding, but no general prohibition exists. Funding arrangements have been used in Italian commercial disputes. The 2026 reforms do not directly regulate funding, but compressed timelines and improved enforcement predictability may make Italian proceedings more attractive to funders. Parties should agree on disclosure protocols and verify the funder’s capacity to meet adverse-cost orders.

How do the reforms interact with insolvency proceedings and restructuring incentives?

The litigation reforms align enforcement timetables with the CCII restructuring framework, creating stronger incentives for early management action and creditor participation in restructuring processes. Creditors should monitor for early-warning indicators, evaluate DIP financing opportunities and streamline internal processes for voting on restructuring plans at shorter notice.

How quickly should general counsel run an audit of active litigation?

The audit should be completed within 7–14 days of the reforms’ entry into force. Cases with deadlines falling within the next 60 days, or with imminent enforcement steps, should be escalated immediately to external counsel. The ten-step checklist provided in this guide offers a structured framework for conducting the audit efficiently.

Where can companies find tailored advice on Italy's litigation reform?

Companies and banks with Italian litigation exposures should engage experienced Italian corporate litigation counsel. The Global Law Experts lawyer directory provides access to vetted practitioners across Italy who specialise in corporate disputes, banking litigation, enforcement and insolvency.

Litigation Reform Italy | Global Law Experts

The litigation reform Italy has undergone in 2026 represents the most consequential overhaul of civil justice procedures in a generation. Legislative Decree No. 211/2025, which entered into force in early 2026 to transpose key EU directives into Italian procedural and enforcement law, together with the constitutional referendum held on March 22–23, 2026, which reshaped judicial governance and judge-assignment mechanisms, have altered the strategic calculus for every company, bank and creditor involved in Italian disputes. The combined effect touches three areas that demand immediate action: case timetables and hearing cadence, enforcement mechanics for creditors seeking to realise collateral or seize assets, and the incentive structures governing insolvency and restructuring processes under the Codice della Crisi d’Impresa e dell’Insolvenza (CCII).

This guide provides in-house legal teams, general counsel, credit and risk managers, CFOs and insolvency advisors with a practical, step-by-step playbook for adapting dispute strategy under the new regime.

Three immediate priorities for every affected stakeholder:

Audit all active Italian litigation and enforcement proceedings within the next 14 days.
Preserve existing enforcement positions, seizure notices, provisional measures and collateral registrations, before transitional windows close.
Update restructuring playbooks and loan-covenant language to reflect the changed CCII incentives and creditor-voting rules.

The sections that follow break each of these priorities into concrete actions, timelines and decision frameworks designed for immediate implementation. For broader context on corporate litigation in Italy, readers may consult our dedicated practice-area overview.

What Changed: The Statutory and Constitutional Context Behind Italy’s Litigation Reform

Understanding what has actually changed, and what has not, is the essential first step before adjusting any dispute strategy. The 2026 reforms rest on two distinct legal pillars: a legislative decree amending procedural and financial law, and a constitutional referendum altering the governance of the judiciary itself. Together, they create a new operating environment for judicial reform in Italy in 2026.

Legislative Decree No. 211/2025, Key Provisions

Legislative Decree No. 211/2025 was adopted by the Italian Council of Ministers to transpose EU directives affecting civil procedure, enforcement mechanisms and aspects of financial regulation. The decree amends provisions of both the Codice di Procedura Civile and the Testo Unico della Finanza (Consolidated Financial Act). Its principal effects for corporate and banking disputes include the following:

Streamlined first-instance procedure. Stricter preclusionary deadlines for filing pleadings and evidence at first instance, with the aim of concentrating the preparatory phase and reducing the interval between the filing of a claim and the first hearing.
Enhanced enforcement tools. Expanded grounds for granting provisional measures, including broader use of sequestro conservativo (protective seizure) in commercial disputes, and new procedural channels enabling faster garnishment orders.
Tighter appellate timelines. Reduced windows for lodging appeals and cross-appeals, designed to shorten the overall lifecycle of commercial proceedings.
Amendments to the Consolidated Financial Act and Civil Code. Targeted changes to governance, disclosure and creditor-protection rules for listed companies and financial intermediaries, as detailed in analysis published by major international law firms.
Digital case management mandates. Expanded requirements for electronic filing, digital hearings and centralised case-management systems, building on Italy’s existing Processo Civile Telematico infrastructure.

The Italian government has framed these measures as part of the broader civil justice reform agenda supported by the National Recovery and Resilience Plan (PNRR), which sets explicit targets for reducing the average disposition time of civil cases.

March 22–23, 2026 Referendum, Practical Effects on Judicial Governance

The constitutional referendum held on March 22–23, 2026 addressed the structure and governance of the Italian judiciary. The reforms subject to the confirmatory vote included changes to the composition and role of the Consiglio Superiore della Magistratura (CSM), the body responsible for judicial appointments, transfers and disciplinary proceedings, as well as modifications to the criteria for assigning judges to specific courts and case types.

From the perspective of litigants and banks, the practical effects of these governance changes centre on judge-assignment predictability. Early indications suggest that the reformed CSM procedures may lead to a period of transitional uncertainty as new assignment criteria are implemented across Italian courts. Industry observers expect that cases already in progress could experience reassignment of judges in certain districts, potentially affecting hearing schedules and requiring updated case-management strategies. Litigants with proceedings before courts that are the subject of internal reorganisation should monitor developments closely and maintain flexibility in hearing preparation.

Immediate Audit and Triage Checklist for Active Italian Litigation

General counsel and credit risk managers should treat the entry into force of these reforms as a triggering event for a comprehensive portfolio review. The following ten-step checklist provides a framework for the litigation reform Italy now requires. Each action is mapped to the responsible function within the organisation.

Step	Action	Responsible function
1	Compile a complete register of all active proceedings, arbitrations and enforcement actions in Italy.	In-house legal / litigation coordinator
2	Map every pending case to its assigned judge and court; flag any cases in districts likely to undergo judicial reorganisation.	External Italian counsel
3	Identify all upcoming procedural deadlines affected by the new preclusionary rules and confirm compliance.	External counsel / in-house paralegal
4	Verify the status and perfection of every existing provisional measure, seizure order and collateral registration.	External counsel / bank relationship manager
5	Review limitation periods for claims not yet filed; assess whether accelerated filing is warranted under the shortened timetables.	In-house legal
6	Confirm that all escrow accounts, blocked funds and asset-preservation arrangements remain enforceable under the amended rules.	Treasury / finance team
7	Notify litigation insurers, after-the-event (ATE) policy providers and any third-party funders of the reform’s impact on covered proceedings.	Risk management / insurance coordinator
8	Update external counsel budgets and fee estimates to reflect faster timetables and potentially compressed discovery and hearing schedules.	In-house legal / procurement
9	Establish escalation triggers: define the circumstances (e.g., judge reassignment, failed provisional measure) that require board-level or executive-committee reporting.	General counsel / compliance
10	Document the audit in a written triage report, ranking each active matter by risk level (high / medium / low) and recommended next action within 30, 60 and 90 days.	General counsel

The audit should be completed within 7–14 days. Any case in which a key deadline falls within the next 60 days, or in which enforcement steps are imminent, should be escalated immediately to external counsel for a transitional-compliance review. The cost of a delayed audit is disproportionate: missed preclusionary deadlines under the amended rules can result in the permanent loss of the right to present evidence or raise defences.

How Will the 2026 Reforms Change Case Timetables and Enforcement for Creditors?

Faster case timetables in Italy sit at the heart of the PNRR civil justice reform agenda. The government has committed to reducing the average disposition time of civil proceedings, and the procedural amendments introduced by Legislative Decree No. 211/2025 are the primary mechanism for achieving that goal. For creditors, shorter timetables are a double-edged sword: they accelerate the path to judgment and enforcement, but they also compress the time available for preparation and strategic decision-making.

New Case Timetables and Expected Hearing Cadence

The following table summarises the expected shift in timing across the principal stages of a commercial litigation proceeding. These figures reflect the reform’s targets and early implementation experience; actual durations will vary by court and district.

Procedural stage	Pre-reform typical timing	Post-reform expected timing & notes
Service of claim → first hearing	6–12 months	3–6 months. Stricter scheduling rules and digital case management are designed to halve the initial waiting period in many districts.
First hearing → judgment (first instance)	18–36 months	12–18 months. Concentrated evidence phases and tighter preclusionary deadlines limit the number of adjournments.
Judgment → appeal decision	24–36 months	12–24 months. Reduced windows for lodging and briefing appeals, with an emphasis on written submissions over oral hearings.
Final judgment → commencement of enforcement	2–6 months	1–3 months. Expedited enforcement channels for commercial creditors holding enforceable titles.

Creditors should recalibrate their litigation budgets and internal reporting accordingly. A case that previously occupied a four-to-five-year lifecycle from filing to enforcement may now resolve in two to three years, but only if the litigant is prepared to meet every compressed deadline without delay.

Enforcement Mechanics: Seizure, Garnishment and Provisional Measures

Enforcement in Italy in 2026 benefits from several procedural enhancements. The amended rules broaden the circumstances in which courts may grant sequestro conservativo, the protective seizure mechanism that freezes a debtor’s assets pending judgment. Creditors now have a wider evidentiary basis for demonstrating the risk of dissipation, and the procedural requirements for obtaining garnishment orders against bank accounts and receivables have been simplified.

For creditors with existing enforcement positions, the immediate priority is preservation:

Verify all seizure notices. Confirm that existing sequestro orders remain compliant with the amended procedural requirements; any deficiency may provide the debtor with a basis for discharge.
Update collateral registrations. Check that pledges, mortgages and assignments registered with local registries are current and reflect the correct underlying documentation.
Monitor provisional-measure renewals. Some provisional measures granted under the prior regime may require renewal or confirmation under the transitional provisions of Legislative Decree No. 211/2025.
Prepare for faster auction timelines. Public auctions for seized real property and movable assets are expected to proceed on a compressed schedule; bidding strategies and reserve-price analysis should be updated.

Banking Disputes in Italy: The Creditor Playbook for 2026

Banks and financial institutions face a uniquely complex intersection of the litigation reform Italy has enacted and the broader regulatory environment, including Golden Power rules that affect banking M&A. The following playbook addresses the three phases of a banking dispute under the reformed regime: pre-litigation preparation, active litigation posture and collateral realisation.

Pre-Litigation: Tightening Documentation and Collateral Perfection

The compressed timetables mean that banks can no longer afford to enter litigation with documentation gaps. Before initiating any enforcement action, credit and risk teams should:

Conduct a perfection audit. Verify that every security interest, mortgage, pledge, assignment of receivables, is properly registered and documented. Any gap identified at this stage is far less costly to remedy than a challenge raised in court.
Review loan covenants. Update covenant language to reflect the changed enforcement and restructuring environment; consider adding clauses that address the creditor’s right to accelerate enforcement under the new provisional-measure rules.
Assess Golden Power exposure. For banks involved in M&A activity or holding strategic equity stakes, the recent recalibration of Italy’s Golden Power regime, designed to support bank consolidation while preserving national-security screening, introduces additional notification and clearance steps that can affect deal timetables and, indirectly, litigation strategy.

Litigation Posture: Enforcement vs. Restructuring

A central strategic question for banks in 2026 is whether to accelerate enforcement or support a borrower’s restructuring. The reforms tilt the calculus in several ways. Faster enforcement timelines make aggressive recovery more attractive for well-secured creditors, but the CCII incentives for early restructuring, including protections for new financing provided during restructuring proceedings, may deliver higher net recoveries in complex cases. The decision should be case-specific and driven by the quality of collateral, the borrower’s operational viability and the creditor’s position in the capital structure.

Cross-border collection remains a critical consideration for international banks with Italian exposures. The EU’s recast Brussels I Regulation and the enforcement of European Account Preservation Orders (EAPOs) provide parallel channels that can complement domestic Italian enforcement. Banks should ensure that their external counsel teams are coordinating domestic and cross-border enforcement strategies from the outset.

Reporting and Enforcement Options by Creditor Type

Creditor type	Typical enforcement tools	Practical note (post-2026)
Secured bank	Foreclosure, seizure of pledged assets, public auction	Prioritise perfection audit; fast-track seizure notices where possible under the amended provisional-measure rules.
Unsecured bank	Attachment, garnishment, petition for provisional measures	Consider assignment of claims or DIP financing to bolster recoveries; the broader grounds for sequestro conservativo may now apply.
Bondholder / investor	Acceleration, enforcement via trustees	Check covenants for cross-default triggers; trustees may need to engage Italian local counsel at an earlier stage than previously anticipated.

Insolvency and Restructuring: How Italy’s Litigation Reform Intersects with the CCII

The relationship between litigation and insolvency in Italy has always been complex. The 2026 reforms sharpen the interaction in ways that creditors, debtors and their advisors must understand.

Interaction with the CCII and Insolvency Incentives

Italy’s insolvency framework, codified in the CCII, already encourages early detection of financial distress and provides structured pathways for negotiated restructuring (composizione negoziata della crisi), court-supervised arrangements (concordato preventivo) and formal liquidation. The 2026 litigation reforms reinforce the CCII’s emphasis on speed by aligning enforcement timetables with the restructuring timeline, creating a more coherent framework for creditors deciding between enforcement and restructuring support.

Industry observers expect that the practical effect will be a marked increase in restructuring activity in 2026, as the combination of faster enforcement and enhanced restructuring protections incentivises earlier management action. Creditors in distressed exposures should:

Monitor for early-warning indicators. The CCII requires companies meeting certain thresholds to adopt internal systems for early detection of financial distress. Creditors should request confirmation that these systems are in place and functioning.
Evaluate DIP financing opportunities. New financing provided during restructuring proceedings benefits from statutory priority protections under the CCII. Banks willing to provide debtor-in-possession (DIP) financing may achieve better overall recoveries than those pursuing enforcement alone.
Prepare for creditor-committee participation. Faster timetables mean that creditors must be ready to participate in voting on restructuring plans at shorter notice. Ensure that internal approval processes for voting on plans are streamlined.
Coordinate with insolvency practitioners. Engage restructuring advisors early to assess whether the debtor’s plan is viable and whether supporting it produces a better outcome than enforcement.

Third-Party Litigation Funding, Conditional Fees and Cost Management

Third-party litigation funding in Italy remains a developing area. Unlike common-law jurisdictions where litigation funding is well-established, Italy does not have a comprehensive statutory framework governing third-party funders. However, no general prohibition exists, and funding arrangements have been used in Italian proceedings, particularly in large-scale commercial disputes and class actions.

The 2026 reforms do not directly amend the rules on litigation funding, but the compressed timetables and enhanced enforcement tools may make Italian disputes more attractive to funders by reducing the time-to-resolution and improving the predictability of enforcement outcomes. Practical considerations for parties contemplating funded litigation include:

Disclosure obligations. Italian courts may require disclosure of funding arrangements, particularly if the funder has an interest in the outcome that could affect the administration of justice. Parties should agree on a disclosure protocol with their funder before proceedings commence.
Fee structures. Conditional fee arrangements (patto di quota lite) are subject to restrictions under Italian professional ethics rules, though recent reforms have relaxed some of these constraints. Legal fee agreements must comply with the applicable bar rules.
Assignment of claims. Banks and creditors should consider whether assigning claims to a third-party funder or special-purpose vehicle could improve recovery economics, particularly for portfolios of non-performing loans (NPLs).
Funder due diligence. Creditors who are counterparties to a funded claim should conduct due diligence on the funder’s financial capacity to meet adverse-cost orders and security-for-costs requirements.

Costs, Funding and Enforcement Economics Under the Litigation Reform in Italy

The litigation reform Italy has implemented will alter the economics of dispute resolution in ways that general counsel and CFOs must factor into budgeting and risk provisioning. Shorter proceedings reduce total legal spend in absolute terms, but they also front-load costs: preparation must be more intensive, deadlines less forgiving, and expert evidence commissioned earlier in the process. The likely net effect varies by case complexity.

Low-complexity disputes (debt recovery, straightforward breach of contract): industry observers expect a reduction in total legal costs and a significantly shorter time-to-enforcement. Budget impact: moderate cost savings over the full lifecycle.
Medium-complexity disputes (multi-party commercial litigation, contested enforcement): total costs may remain broadly similar, but the cash-flow profile shifts forward. Budget impact: higher upfront expenditure, offset by earlier resolution.
High-complexity disputes (cross-border insolvency, banking group restructuring, Golden Power-related proceedings): the compressed timetables place a premium on early and intensive preparation. Budget impact: potentially higher total costs in the short term, but substantially faster resolution reduces indirect costs (management distraction, provisioning requirements).

For banks managing large portfolios of Italian exposures, the enforcement economics are particularly relevant. Faster auction timelines and streamlined garnishment procedures reduce the carrying cost of non-performing loans and may improve recovery rates on distressed portfolios.

Practical Timetables and Example Scenarios

The following scenarios illustrate how the reforms might play out in practice across three common dispute types. The timelines are indicative and intended to support internal planning.

Scenario	Critical first 30 days	90-day plan
Corporate breach of contract (Italian subsidiary vs. domestic supplier)	File claim; apply for provisional measures if risk of asset dissipation; complete evidence gathering under tighter preclusionary rules.	First hearing scheduled; exchange of witness statements and expert reports complete; assess settlement posture based on court’s preliminary directions.
Bank foreclosure (secured lender enforcing against commercial real estate)	Verify collateral registration; serve enforcement notice; apply for court-supervised auction on compressed timeline.	Auction date set; reserve-price analysis finalised; coordinate with debtor’s restructuring advisor on possible consensual sale to maximise recovery.
Cross-border insolvency (Italian subsidiary of EU group entering restructuring)	File for recognition of foreign proceedings; apply for protective measures under CCII; notify all Italian creditors.	Creditor committee convened; DIP financing terms negotiated; restructuring plan timetable aligned with main proceedings in lead jurisdiction.

Next Steps and Recommended Actions for the Litigation Reform in Italy

Boards, general counsel, credit officers and restructuring teams should prioritise the following actions in order of urgency:

Complete the ten-step audit outlined above within 14 days. Escalate any high-risk cases immediately.
Preserve all existing enforcement positions. Verify seizure orders, provisional measures and collateral registrations before transitional windows close.
Update dispute-resolution playbooks to reflect the compressed timetables, enhanced provisional-measure rules and changed insolvency incentives.
Engage or re-brief Italian external counsel. Ensure counsel teams are operating under updated fee estimates and are prepared for the faster procedural pace.
Amend loan covenants and facility agreements to incorporate the changed enforcement and restructuring landscape, including provisions addressing the creditor’s options under the revised CCII framework.
Brief the board and executive committee on the reform’s impact, the audit findings and the updated risk profile for Italian exposures.

Organisations that act decisively in the first quarter following the reforms’ entry into force will secure a material advantage in enforcement speed and strategic positioning. Those that delay risk missed deadlines, weakened enforcement positions and suboptimal restructuring outcomes.

Conclusion

The litigation reform Italy enacted through Legislative Decree No. 211/2025 and the March 2026 constitutional referendum is not a distant policy aspiration, it is an operational reality that is already reshaping case timetables, enforcement mechanics and restructuring incentives across Italian courts. Companies and banks that treat this moment as a compliance event rather than a strategic opportunity will fall behind. The playbook is clear: audit, preserve, adapt and engage. The organisations that execute these steps first will set the terms of their disputes, rather than reacting to terms set by others.

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This article was produced by Global Law Experts. For specialist advice on this topic, contact Debora Monaci at SZA Studio Legale, a member of the Global Law Experts network.