According to restructuring consultants, the weakness of the German economy will lead to a significant increase in the number of company bankruptcies in 2025, the Handelsblatt economic daily reports. Insolvencies are expected to rise by 25-30% this year—a level last seen in Germany during the 2009 financial crisis.
Patrik-Ludwig Hantzsch, head of economic research for the credit agency Creditreform, assesses that the accumulated crises of the past few years are now having a delayed impact on companies in the form of insolvencies. “The standstill in economic policy and the decline in innovative strength have weakened Germany as a business location,” he told Berliner Zeitung. And there is hardly any improvement in sight for the new year. On the contrary: “There will be significantly more insolvencies in 2025,” Hantzsch is certain. “Unfortunately, companies in the manufacturing sector that are important for the economy as a whole are particularly affected.”
Hantzsch, however, believes that the cleansing process in the industry is necessary to keep a functioning market economy. “Unfortunately, there will be no recipe that works from one day to the next,” he says. “We need a genuine economic turnaround with the new federal government, which is prepared to prioritize clearly and thus give companies security and a perspective.”
But, as it presently looks, whatever next government Hantzsch thinks of, based on the political parties that can be expected to have seats in the national German parliament, plans will continue the basic flaws of the past, and not provide any real working perspective.
