VOICE OF FREE EUROPE: Germany faces a deepening insolvency crisis as bankruptcies surge across multiple sectors.

The number of companies filing for bankruptcy continues to increase, and analysts do not expect conditions to improve before 2027.

Germany is facing a continued rise in corporate bankruptcies, with new figures showing that business failures increased again in October.

According to preliminary data from the Federal Statistical Office, insolvency proceedings rose by 6.5 percent compared with the same month last year.

Final figures for August show a steeper increase. Local courts reported 1,979 corporate insolvencies, around 12 percent more than a year earlier.

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Creditors’ claims amounted to approximately €5.4 billion, more than double the amount recorded last August.

The highest insolvency rates were found in transportation and warehousing, followed by construction and hospitality. Consumer bankruptcies also climbed by just over eight percent to 6,132 cases.

As reported by Welt, credit agencies expect the total number of bankruptcies this year to be greater than in 2024. In 2024, 21,812 companies filed for insolvency. This was the highest figure since 2015.

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Businesses cite high energy costs, bureaucracy, and weak consumer spending as contributing factors. Protective measures that delayed bankruptcies during the COVID-19 pandemic have also expired.

Credit insurer Allianz Trade forecasts around 24,500 corporate insolvencies in 2025. This represents a rise of 1 percent. The insurer also says the situation may not begin to improve until 2027.

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The company expects insolvencies to fall to about 23,500 cases at that point. In a recent analysis, Allianz Trade also warned that the consequences of ongoing trade disputes could further test business resilience.

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The Federal Association of German Industry (BDI) made a statement about the economic situation. This was in a declaration published in April.

It was signed by more than 100 associations. They said Europe’s largest economy had ‘deteriorated dramatically.’ They described the crisis as largely ‘homemade.’

Jürgen Philippi, a publicly appointed auctioneer, spoke in an interview with Tagesschau in April. He said the situation was now more severe than during the 2008 financial crisis.

‘More and more industries are affected,’ he said, adding that he had turned away clients due to workload.

Philippi also noted a decline in buyers willing to take over distressed companies. He cited complaints from managers about bureaucracy. They also mentioned tax burdens. You can and should share this story on social media. TELL US WHAT YOU THINK