GREECE: An introduction to Dispute Resolution

Over the past years, Greece has faced significant economic challenges, including a financial crisis that led to austerity measures and a dependence on international financial aid. However, the country has made remarkable strides in recent years, culminating in the achievement of an investment-grade rating by late 2023, which was recognised by the majority of credit rating agencies in 2024. This milestone has considerably improved Greece’s ability to attract foreign investment and access international capital markets, positioning it as an increasingly attractive destination for investments, particularly in sectors like tourism, real estate and energy.

For international investors, the efficiency of the legal system plays a crucial role in decision-making. A streamlined and effective judicial system fosters investor confidence, as businesses closely evaluate the legal environment and the speed with which disputes are resolved. A faster, more predictable judicial process not only enhances Greece’s competitiveness, but also ensures the timely execution of major infrastructure and development projects. While significant reforms have been introduced to improve efficiency, the legal system still has room for improvement.

In recent years, Greece has undertaken a series of reforms to enhance the judicial system’s effectiveness. Notable among these is the introduction of digital tools, such as electronic filing of legal documents, digital receipt of judgments, and the electronic issuance of various judicial certificates. These initiatives aim to simplify procedures, reduce clerical workloads, and minimise paper-based processes. Additionally, efforts to reduce the backlog of cases have included promoting alternative dispute resolution (ADR) mechanisms, such as mandatory mediation for certain types of disputes. Despite these advancements, challenges persist in urban courts, where case backlogs continue to delay case resolutions.

To address these issues, the current government has outlined a strategy for judicial reform focused on expediting legal processes. Key elements of this plan include the consolidation of Peace Courts and First Instance Courts nationwide and a reduction in the number of Appeal Courts to streamline the appellate process. Aiming to double the number of first-instance judges through the upgrading of Peace Court judges, this restructuring seeks to balance caseloads more evenly, optimise judicial resource utilisation, and reduce the movement of judges, lawyers and citizens. However, these reforms are in their early stages, and therefore, their practical impact on accelerating case resolutions remains to be seen.

Another significant aspect of Greece’s ongoing legal reforms has been the delegation of certain tasks from the courts to the legal profession. This move, widely supported by the legal community, began within 2024 with the transfer of responsibilities to lawyers, such as issuing inheritance certificates, accepting inheritances, registering mortgage pre-registrations, and providing sworn affidavits – tasks that do not involve disputes. By transferring these duties to lawyers, the government aimed to alleviate the burden on judges, enabling them to focus on more complex legal matters and contentious cases. As the scope of these reforms expands, future plans include delegating additional responsibilities to the legal profession, such as issuing payment orders, eviction notices and the establishment of private capital companies. Discussions are also underway to potentially make the involvement of lawyers mandatory in real estate transactions (essentially reinstating a previously implemented measure), such as property transfers, to ensure greater security and reduce the likelihood of future disputes.

These reforms have already yielded positive results, with the legal profession taking a more prominent role in managing routine matters, thereby enabling faster service and greater efficiency. Since the introduction of these reforms, approximately 10,000 cases, including matters related to association formation, mortgage pre-registration and inheritance certificates, have been transferred to lawyers. Additionally, around 125,000 sworn affidavits have been issued by lawyers, highlighting the increasing role of the legal profession in handling non-contentious matters.

The Ministry of Justice has set an ambitious target for implementing a comprehensive legal framework by mid-2025, aiming to align Greek law, such as the Civil Procedure Code, with other European legal codes. A key aspect of this reform will be making commercial arbitration more attractive. Although arbitration is available in Greece, its use has been limited due to procedural hurdles. The reform seeks to retain arbitration cases within Greece, as many businesses currently opt for arbitration in other European countries. This shift would not only make Greece a more appealing destination for arbitration but also encourage more businesses, beyond large corporations with arbitration clauses, to consider it as a viable alternative to litigation.

Additionally, mediation is set to become an integral part of Greece’s legal system, particularly in civil cases such as landlord-tenant disputes, employment issues and family law matters. The government plans to extend mediation services to a wider range of cases, enabling parties to resolve disputes quickly through certified mediators, who may be judges, lawyers or specialists in particular fields.

To further address the backlog of cases, there is growing support for raising the costs associated with legal proceedings. Higher fees could incentivise the use of ADR methods like mediation, thereby reducing pressure on the Courts. Additionally, introducing incentives such as tax benefits for parties choosing ADR could help alleviate delays and streamline legal processes. Early motion practices may also expedite litigation by addressing procedural issues early, saving both time and resources.

In conclusion, while Greece has made significant progress in modernising its legal system, continuous refinement and adaptation of the framework will be necessary to meet the evolving demands of both the legal profession and the business community. A robust and efficient judicial system will be pivotal to attracting further investment, supporting economic growth, and ensuring Greece remains competitive in the global market.