Germany becomes a nation of bankruptcy with no end in sight

Germany anticipates a surge in corporate insolvencies through 2025 and 2026, following a record number in 2024. Allianz Trade predicts an 11 percent increase this year, reaching about 24,400 cases, with a further 3 percent rise in 2026.

In Q1 2025, 16 large companies filed for insolvency. CEO Milo Bogaerts warned of continued major insolvencies due to economic instability and trade tariffs, affecting supply chains.

The Federal Association of German Industry (BDI) criticized the government's economic and tax policies, highlighting a severe crisis. Industries most impacted include textiles, automotive, and healthcare, with recent insolvencies in major companies. Jürgen Philippi, a bankruptcy expert, noted an increasing reluctance among directors to salvage failing businesses.