Impact of Judicial System Reforms on Commercial Litigation in Greece

I. Introduction

Greece’s judicial system has been long criticized for inefficiencies, including lengthy case durations and large backlogs, which have deterred investment and hindered economic development. In the past few years, particularly from 2024, there have been a sequence of reforms implemented to modernize the system, boost digitalization, and strengthen alternative dispute resolution (ADR) methods. These changes have significant implications for civil & commercial litigation, a domain highly applicable to business involving contracts, insolvency, tax cases, and international trade. The most significant reforms, their implementation, and their real and potential impacts on commercial litigation are covered in this article.

Additionally, ADR in Greece includes mediation, arbitration, and other settlement mechanisms, all of which are gaining traction among businesses—especially in cross-border contexts such as maritime, real estate, and tax disputes.

II. Background: Pre-Reform Problems with the Greek Judicial System

Prior to the latest wave of reform, the Greek judicial system was among the least efficient in the European Union. Disposition times for litigious civil and commercial cases at first instance were 746 days in 2022, well above the EU average ( estimated to be around 200–250 days depending on jurisdiction). Backlogs were elevated, with pending civil and commercial matters. The delays affected economic performance adversely by raising business uncertainty, adding costs, and discouraging foreign investment. For instance, commercial disputes lingered due to the fact that courts were congested, judges specialized narrow, and there were inadequate electronic resources, further entangling sectors like shipping, energy, and real estate.

The economic cost was high: 56.2% of companies named slow justice as a principal growth hindrance, rising to 80% for medium-sized businesses. International Monetary Fund (IMF) policy simulations put the figure at an estimated dismantling of such inefficiencies returning significant investment and productivity gains.

III. Key Judicial Reforms in 2024-2025

The Greek government passed some laws in 2024 to redefine the regime, with the consequences rolled over to 2025. The reforms involve structural, procedural, and digital aspects, most of which are funded by the EU’s Recovery and Resilience Facility.

A. Structural Reorganisation

A key change was Law 5108/2024 (effective September 16, 2024), which abolished Magistrates’ Courts (handling small claims) and integrated them into Courts of First Instance. This unified the judicial environment, assigning up to €250,000 cases to single-member courts and more expensive disputes to multi-member courts. The idea is to make best use of resources, reduce unbalanced workloads, and optimize judge productivity by trying cases in larger, better-equipped centers.

In addition, Law 5095/2024 delegated administrative tasks—such as issuing affidavits, certificates of inheritance, and mortgage registrations—to lawyers, this measure aims to decongest the judiciary by offloading non-litigious functions.

B. Procedural and Efficiency Improvements

Civil Procedure Code reforms include Law 5134/2024, which harmonized civil and criminal procedure with the new structure of justice. Noticeable was also Law 5119/2024, which revolutionized administrative justice by way of deadlines, page limits, and broader non-public hearings in less complex cases. Further procedural reform is ongoing as Law 5221/2025 will modify various articles of Civil Procedure Code introducing, among others, an electronic case file. Its implementation is scheduled for January 2026.

C. Encouragement of Alternative Dispute Resolution

To reduce court reliance, mandatory mediation was strengthened under Law 4640/2019 to impose on compulsory sessions for disputes exceeding the amount of €30,000 falling into the Ordinary Procedures, with penalties for absence. Arbitration reforms under Law 5016/2023 adopted the UNCITRAL Model Law (2006 revisions), expanding arbitrability, enhancing tribunal power on interim relief, and limiting court interference. This promotes an arbitration-friendly environment, particularly for international commercial arbitration.

III.  Consequences on Commercial Litigation

A. Positive Effects

Improvements in arbitration have made Greece more attractive as a seat for international disputes, with greater enforceability of contracts and strong enforcement under the New York Convention. This is particularly helpful for marine and cross-border commercial disputes, less reliant on slow courts.

B. Challenges and Mixed Results

Despite the improvement, civil and commercial disposition times remained high at 771 days in 2023 (up slightly from 746 in 2022), with a clearance rate of approximately 92%, still below the EU average and far from ideal. Civil courts remain congested, with hearings scheduled 12-16 months after filing and judgments that all too frequently are delayed beyond eight months. Specialization among judges in commercial or insolvency matters remains limited, which affects consistency and predictability.

Costs are still an issue: although the common rule “loser pays” applies,  exceptions are made when the law is ambiguous or complex. Recoverable legal costs typically amount to about 2% of the dispute value (this is an approximate figure and may vary). Upfront costs (e.g., stamp duties and court fees) remain high for litigants.

C. Economic Implications

Reform is poised to boost investor confidence via predictability and reduced bureaucracy. For commercial sectors, faster resolution in real estate and insolvency lawsuits could unleash potential. Nevertheless, ongoing delays continue to hamper the economy, as high judge-per-capita levels (37.3 per 100,000 in 2022) have not yet resulted in proportional efficiency gains.

IV. Conclusion

Commercial litigation enjoys the benefits of streamlined processes, technological support, and robust ADR options, but complete effects will be felt only when implementations mature. Continuous monitoring, say via EU scoreboards, will be crucial. If pursued, these advancements would render Greece a more attractive venue for business disputes to resolve, attracting investment and growth during a post-bailout era.

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