Greece Submits Landmark Alternative Dispute Resolution Code to Parliament — A Game-Changer for Business

Greece's justice system is undergoing a structural overhaul. A comprehensive Alternative Dispute Resolution (ADR) Code has been submitted to Parliament, consolidating three previously fragmented institutional frameworks — arbitration, mediation, and judicial conciliation — into a single unified legislative instrument. For businesses that operate in Greece or have contractual exposure to Greek jurisdiction, this reform reshapes the dispute resolution landscape in meaningful ways.

What the Code Covers: Three Pillars, One Framework

The proposed legislation is structured around three interconnected pillars:

• Arbitration — A unified system covering both domestic and international proceedings, including third-party funding provisions for the first time in Greek law

• Mediation — Mandatory introductory session expanded to a wider range of civil and commercial disputes, with stronger financial sanctions for unjustified non-participation

• Judicial Conciliation — A new dedicated office structure in Athens, Thessaloniki, and Piraeus, staffed by trained judge-mediators

Key Developments for Businesses

• Tax exemptions and incentives for parties choosing mediation — reduced fees and stamp duties on mediated agreements

• Mandatory mediation session as a prerequisite for court filing in expanded dispute categories

• Higher financial penalties for unjustified refusal to attend mediation — payable to the Court Building Fund

• Digital Mediation Portal (E.Ψ.Π.Δ.) for electronic submission of mediation agreements

• Third-party litigation funding formally recognized for arbitration proceedings

• Lower monetary thresholds for arbitration clauses in public procurement contracts

Market and Business Perspective

For multinational companies with Greek operations, this reform signals a maturation of the country's dispute resolution infrastructure. The introduction of third-party funding in arbitration brings Greece in line with established European commercial arbitration jurisdictions like France, Switzerland, and the Netherlands. The combination of financial incentives, digital infrastructure, and stricter enforcement of participation requirements creates a more businessfriendly environment for resolving disputes efficiently.

The tax exemption provisions deserve particular attention. If mediated agreements are exempt from stamp duties and court fees, the financial advantage of choosing mediation over litigation becomes quantifiable — especially for mid-to-large commercial disputes. Businesses should review their standard contract templates to consider whether arbitration or mediation clauses should be updated to reflect the new framework.

Key Takeaways

• Greece is unifying its ADR framework — arbitration, mediation, and judicial conciliation in one Code

• Tax incentives make mediation financially attractive for commercial parties

• Mandatory pre-litigation mediation is being expanded — businesses should update compliance protocols

• Third-party funding in arbitration is now formally recognized — opening new litigation financing options

• Contract templates with Greek jurisdiction should be reviewed for ADR clause alignment

Closing Insight

Greece's ADR Code represents the most comprehensive overhaul of its dispute resolution system in a generation. Whether it fulfills its promise will depend on implementation quality, the depth of the mediator and arbitrator talent pool, and the consistency of enforcement. For now, the direction is clear: Greece wants more disputes resolved outside its overburdened courts — and it is building the financial, technological, and institutional infrastructure to make that happen. Businesses that understand this shift early will hold a strategic advantage.

Source: Hellenic Parliament / taxheaven.gr / e-forologia.gr

Read the full article here: https://www.taxheaven.gr/news/74797/katateohke-sth-boylh-o-kwdikas-enallaktikhs-epilyshs-diaforwn

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