GREECE: An Introduction to Dispute Resolution

Greece has confronted economic difficulties in the past decade, dealing with a financial crisis that triggered austerity measures and a reliance on international financial support. However, in the past few years, there has been a gradual improvement in Greece’s credit situation, resulting in the attainment of an investment-grade rating in late 2023. Subsequently, the country’s capacity to attract foreign investment and to access international capital markets has been significantly strengthened, rendering Greece a highly appealing destination for investment opportunities in sectors such as tourism, real estate, energy and technology.

Effective court proceedings are crucial in enticing foreign investments, as international investors meticulously assess the legal environment and the efficiency of resolving disputes when making investment decisions. A streamlined judicial process would, thus, enhance Greece’s competitiveness in the global market, since expedited court proceedings are crucial for the timely execution of major infrastructure and development projects. Despite the widely acknowledged need for improvement, the data presents a discouraging outlook. Specifically, the World Bank’s 2020 Doing Business survey ranked Greece at the 146th global position in contract enforcement, a ranking directly attributed to delays in the administration of justice. Surprisingly, delays in the rendering of justice are not linked to a shortage of judges, since Greece surpasses the EU average in judges per population. In 2016, Greece had 25.8 judges per 100,000 inhabitants, while the EU average was 21 judges. Comparatively, Germany had 24.2, Spain had 11.5, Italy had 10.6, and France had 10.4 judges per 100,000 inhabitants (Council of Europe, 2018).

In response to these challenges, over the last two decades, Greece has implemented a series of legal reforms aimed at improving the effectiveness of the judicial system. In more recent times, digital reforms have also been introduced, including the introduction of electronic filing of legal writs, electronic receipt of judgments, digital issuance of various judicial certificates, etc; all initiatives aiming to streamline procedures, diminish volumes of work from judicial clerks and reduce paperwork. Efforts have also been directed at addressing case backlogs and delays by the promotion of alternative dispute resolution mechanisms, such as the adoption of obligatory mediation proceedings. Furthermore, the multiplicity of laws and variations in their interpretation and application among different courts contribute to inconsistencies.

Despite the above, and numerous other reforms, challenges persist in the Greek legal system, including backlogs in certain urban courts leading to delays in case resolution. In response to the challenges posed by these delays, the current Greek government has committed to implementing measures aimed at expediting legal processes. The strategy for 2024 is to accelerate the judicial process and primarily includes the consolidation of Peace Courts and First Instance Courts nationwide, along with a reduction in the number of Appeal Courts, aiming to simplify the appellate process. Anticipated outcomes include the doubling of first-instance judges to 2,162 (due to the upgrade of Peace Court judges), fostering a more balanced distribution of caseloads among them. This restructuring also aims to create larger judicial formations, optimising the utilisation of judicial functions and better managing caseloads. Additionally, the initiative seeks to significantly reduce movements of judges, lawyers, and citizens, fostering a more accessible and less geographically fragmented judicial system. The plan also intends to relieve major urban courts by transferring judicial matters to lawyers, covering the issuance of court payment orders, inheritance certificates, sworn affidavits, etc. Finally, the government emphasises the training and specialisation of judges by maintaining their position in specialised court chambers for two to four years, to ensure a more knowledgeable and adept judiciary.

In addressing the multifaceted challenges confronting the Greek justice system, it is imperative to recognise that a comprehensive strategy is essential. As such, the Ministry’s proactive role in steering the justice system in the right direction must be acknowledged. The integration of digital transformation emerges as a cornerstone of the above effort, with ongoing endeavors to modernise and streamline judicial processes for greater accessibility and efficiency. For instance, the implementation of shorter deadlines for the submission of briefs and exhibits was a noteworthy step towards expediting legal proceedings. This move was aimed at fostering a more expeditious legal environment and underscored a commitment to timely dispute resolution. But this was not enough on its own. The role and overall responsibility of the judiciary in this society-critical function cannot be overlooked. On the other hand, although these measures represent significant strides toward reform, the broader landscape of the Greek justice system calls for sustained exploration and the implementation of innovative strategies. The cost-effectiveness of the justice system in Greece has inadvertently contributed to its sluggishness and overloading. The relatively low fees associated with legal proceedings have led to a backlog of cases, impeding the timely resolution of disputes. Therefore, there is a growing consensus that increasing costs may be necessary. By adjusting the financial aspects of legal proceedings, the aim is to incentivise alternative dispute resolution (ADR) methods, such as mediation, as viable and cost-effective alternatives. In addition to introducing higher fees, the implementation of incentives, potentially in the form of tax benefits or other advantages, to encourage parties to opt for ADR proceedings, might lead them in choosing such mechanisms. Early motion practice might also contribute to the expeditious resolution of litigation proceedings. This would involve timely filing motions with the court to address specific legal issues or procedural matters, such as lack of jurisdiction, vagueness, or other procedural defects. By initiating such motions during the early stages, parties can efficiently address fundamental legal matters, potentially narrowing the focus of the litigation and saving time and resources. In any case, continuous collaboration between stakeholders, ongoing assessment of the evolving legal landscape, and a commitment to adaptability to resolve any inaccuracies and irregularities will be crucial in eventually establishing a robust and efficient legal framework that meets the needs of Greece in the current business landscape.