welt.de
German Company Insolvencies Surge 12.1 Percent in February 2025"
German company insolvencies rose 12.1 percent in February 2025 compared to the previous year, reaching 21,812 for 2024 (a 22.4 percent increase), driven by a 127.5 percent surge in large insolvencies exceeding \$25 million, totaling 314 cases; creditor claims more than doubled to \$58.1 billion.
- What is the immediate impact of the significant rise in German company insolvencies in February 2025, and what are the most affected sectors?
- In February 2025, German company insolvencies surged by 12.1 percent compared to the previous year, continuing a trend of double-digit increases since June 2023 (excluding June 2024). The total for 2024 reached 21,812, a 22.4 percent increase over 2023, exceeding the previous high in 2015. Creditor claims more than doubled to \$58.1 billion.
- What are the primary causes of the dramatic increase in large-scale insolvencies in Germany during 2024, and what is their potential impact on related businesses?
- The rise in insolvencies is linked to a 127.5 percent increase in large insolvencies (over \$25 million), reaching 314 cases. This surge in large bankruptcies is expected to create domino effects on related companies. Sectors most affected include transportation, construction, and other business services.
- Considering differing expert predictions, what are the most likely scenarios for the number of company insolvencies in Germany in 2025, and what underlying economic factors will determine the outcome?
- While some experts predict up to 26,000 insolvencies in 2025, others suggest a potential stagnation or slight decrease. However, the significant increase in large insolvencies and the underlying issues of high energy costs, supply chain challenges, and political uncertainty suggest continued instability in the German economy.
Cognitive Concepts
Framing Bias
The headline (not provided but implied by the text) and the opening paragraph immediately establish a negative tone by highlighting the sharp increase in company insolvencies. The consistent use of statistics on rising numbers reinforces this negative framing throughout the article. While the article mentions a contrasting viewpoint from the IWH, this is presented near the end, minimizing its potential impact on the reader's overall interpretation.
Language Bias
The language used is largely neutral and factual, relying heavily on statistics and quotes from experts. However, the repeated emphasis on the "sharp increase" and "high" numbers of insolvencies contributes to a negative tone, even if the language itself is not explicitly loaded.
Bias by Omission
The article focuses heavily on the increase in company insolvencies, providing specific numbers and expert opinions. However, it omits discussion of potential government interventions or support systems aimed at mitigating the impact of the recession on businesses. While it mentions high energy costs and supply chain issues, it doesn't delve into the effectiveness of any measures taken to address these problems. Further, the article lacks a discussion of the geographic distribution of insolvencies across Germany, which could offer valuable insights.
False Dichotomy
The article presents a somewhat simplified view by focusing primarily on the negative aspects of the economic situation (rising insolvencies) without offering a balanced perspective on potential positive developments or counteracting economic forces. While acknowledging differing expert opinions on future trends, the overall narrative leans towards a pessimistic outlook.
Sustainable Development Goals
The article reports a significant increase in business insolvencies in Germany, indicating a decline in economic activity and potential job losses. This negatively impacts decent work and economic growth, as rising unemployment and business failures hinder economic progress and worsen living standards. The increase in creditor claims also points to economic instability and potential financial distress for many.