The Southern European market has been largely dictated by the recent inflow of foreign investment to the region, as the real estate, renewable energy, and corporate spheres profited extensively throughout 2023. The Euro Elite’s Southern Europe contingent comprises firms from the highly competitive Israeli and Greek markets. While Israel is technically not in Europe, it has been included in the Euro Elite analysis for some years. However, the country’s war against Hamas has sent shockwaves through its $431bn economy, affecting many thousands of businesses and plunging many industries into crisis – making any assessment of the legal market inappropriate at present.
At the close of 2023, Greece’s economic growth continued to outstrip that of other European nations, with the country experiencing a sector boom in the real estate and construction industries. George Bersis, managing partner of POTAMITISVEKRIS, partly attributes the progress down to ‘the reforms of the current pro-business government kicking in’ alongside ‘foreign direct investment’. Blackstone Real Estate Partners Europe is championing this investment drive, as evidenced by its purchase of five high-end hotel resorts for €178m.
Since the Greek government passed the 2023 arbitration law a year ago, the legal sector has experienced a major boom in ADR proceedings, with global corporations increasingly deeming Greece to be an attractive seat for cross-border, multiparty arbitrations. The International Court of Arbitration continually finds itself at the forefront of arbitrary claims – most notably Prenecon’s case against the German wind turbine company Enercon. Considering this, Alexandros Kosmopoulos, managing partner of AKL Law Firm, expects further ‘reforms that will expedite the resolution of disputes’, expanding Greece’s influence as a station for commercial settlements.
Mirroring the trends witnessed in 2022, renewable projects remain a consistent source of activity for the Greek legal profession. Bernitsas Law Firm’s managing partner Panayotis Bernitsas cites the team’s role in ‘advising [clients] extensively on energy capture and storage’ initiatives, underlining the impact of the EU’s approval of €30bn for climate investments in Greece made in 2021. Foreign investors – recognising the favourable weather patterns afforded to the country – have sought to capitalise on the rise in wind, solar, and photovoltaic ventures. This is best evidenced by the European Investment Bank’s commitment of €400m to support new investment for Mytilineos Energy, which will accelerate renewable energy production across Greece and other EU states.
Increased activity in the M&A and corporate sectors has been fuelled by the influx of foreign capital. The EY Attractiveness Survey Greece 2023 showcased growth in the country’s private equity industry, with Kosmopoulos postulating that ‘2024 could be marked by activity in the M&A and capital markets areas’. Due to this, a somewhat overlooked development comes from within the legal corporate field. Major consultancy firms and international law firms are increasingly investing in their Greek legal divisions – explaining the heightened competition in the market – as new players enter the fray. This could inevitably cultivate a tussle for talent among Greek law firms, notes Bersis, particularly with the demand for skilled corporate practitioners growing.
Across Bulgaria, commercial and corporate investments have continued to prosper, particularly in the renewable energy, technology, and construction sectors, including on transactions and regulatory mandates.
Some practitioners have noted a gradual shift in client base, including Anna Rizova, managing partner of Wolf Theiss Bulgaria, who notes a ‘cautious international market’ while ‘local companies exhibited growth’ in transactions and expansion in the Bulgarian market, where national venture capital funds have been active in supporting local start-ups and large-scale transactions with international financial support decreased.
‘2024 could be marked by activity in the M&A and capital markets areas.’ Alexandros Kosmopoulos, AKL
Inbound investments from international players in Croatia have continued to increase since 2020, particularly in the real estate and tourism sectors, with local and international firms noting an increase in large construction and energy project management and financing. Generally, firms have experienced continued growth in transactional work within the IT and production industries. Lea Mužić, of Schoenherr in cooperation with Croatian lawyers, predicts that next year will be ‘very dynamic,’ with plans for the Croatian government to announce a market premium tender on renewable electricity production. However, legislative and practical obstacles to renewable energy projects remain a concern due to the country’s extensive regulatory restrictions. Recession continues to concern firms in the jurisdiction following Covid-19, with many noting an increase in restructuring and bankruptcy work.
The overwhelming view surrounding developments in 2024 is one of optimism. Further growth is expected in the corporate arena – likely facilitating further investment in renewable initiatives and real estate ventures. A further expected trend concerns rapid advancements in the technology sphere across the region, with law firms in Greece and Croatia being frequently called upon to act in high-profile transactions, alongside advising on complex initiatives. LB