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Rising Insolvencies in Germany
A significant rise in insolvencies in Germany is prompting concerns, with experts attributing the increase to various factors beyond a simple economic downturn, including outdated business models and political uncertainty.
German
Germany
PoliticsEconomyGermany Labour MarketBusinessInsolvency
VidAllianz TradeLeibniz-Institut Für Wirtschaftsforschung Halle (Iwh)GaleriaEsprit
Christoph NieringMilo Bogaerts
- What is the current state of insolvencies in Germany?
- Insolvencies in Germany are significantly increasing this year, with insolvency administrators warning that a prolonged political vacuum would worsen the situation.
- How do insolvency administrators view the current situation?
- While insolvency administrators acknowledge the rise in bankruptcies, they don't see it as a "wave", but rather a normalization after government aid during the pandemic and a decrease in business startups.
- Which sectors are particularly affected by the rising number of insolvencies?
- Several sectors in Germany are experiencing increased financial difficulties, including the automotive industry, gastronomy, retail, and real estate. These difficulties are primarily due to factors beyond a general downturn, such as transformation problems and outdated business models.
- What are the predictions for company bankruptcies in Germany for 2024 and 2025?
- The Allianz Trade predicts around 22,200 company bankruptcies in Germany in 2024, a 25% increase from the previous year, and a further increase to around 23,000 in 2025.
- What is the opinion of insolvency administrators regarding the political situation and its impact on businesses?
- Christoph Niering, chairman of the Association of Insolvency Administrators and Trustees in Germany (VID), urges swift new elections, arguing that a prolonged political vacuum would deter investments and exacerbate the situation for struggling businesses.