International commercial arbitration in 2025: developments, risks, and recommendations
Arbitration continues to be a key element for Spanish companies operating internationally. However, recent years have brought regulatory changes, controversial European decisions, and new practices that require an update to the strategic vision. In this article, we examine the latest developments in international arbitration, with a special focus on Spain, and propose operational recommendations for risk mitigation.
1. Recent overview and trends
- New IBA Guidelines on conflicts of interest: greater transparency and disclosure of connections.
- CIAM-CIAR progress: 53 cases and €280 million in dispute since 2020, with an average duration of 11 months.
- Growing use of technology and artificial intelligence in arbitration proceedings.
- Decision (EU) 2025/1235 on the Antin case: an ICSID award against Spain considered illegal state aid.
- CJEU reaffirms incompatibility of intra-Community arbitration with EU law.
2. Emerging risks in 2025
Risk | Description | Practical consequences |
Impediment to enforcement due to state aid | A favourable ruling could be considered illegal aid under EU law. | Impossibility of compulsory payment, opposition by the Commission, challenges by third parties |
Invalidity of intra-Community clauses | Arbitration agreements between investors and Member States may be declared incompatible with EU law | Exposure to nullity or denial of jurisdiction |
Regulatory compliance costs | Greater demand for transparency, conflicts of interest, institutional control | Increased operating costs and greater risks of invalidity |
Divergence between arbitration seats | Arbitration institutions may have different criteria. | Risk of arbitral “shopping” and unpredictable decisions |
Use of external financing | Lack of regulatory clarity and risks of conflicts of interest | Difficulty in ensuring ethics and control in third-party participation |
3. Updated legal framework (2025)
- Spain: Law 60/2003 on Arbitration (amended in 2011), draft arbitration reform in 2025 and new Regulations of the Madrid Court of Arbitration (January 2025).
- European law: Decision (EU) 2025/1235 on the Antin award, Achmea and Komstroy case law, with limitations on intra-Community arbitration.
- Arbitration institutions: modernised rules (CIAM-CIAR, ICC, LCIA, Spanish courts).
4. Practical recommendations for Spanish companies
- Draft clear arbitration clauses, avoiding conflicts with EU law.
- Choose prestigious venues and institutions with modern rules.
- Ensure transparency in the appointment of arbitrators.
- Plan financing and costs of the proceedings.
- Assess regulatory and enforcement risks.
- Maintain constant regulatory monitoring.
5. Conclusion
The year 2025 marks a phase of tension between international arbitration and European Union law. For Spanish companies, arbitration remains a powerful tool, but its effectiveness depends on strategic planning, choosing the right venue and specialised advice.
| Decision UE1235 2025 | 1613 KB |
