Finance
German business lobby raises alarm over highest number of bankruptcies in 11 years
Published by Global Banking and Finance Review
Posted on January 12, 2026
Germany Faces Record High Bankruptcies as Economic Struggles Persist
Rising Bankruptcy Rates in Germany
BERLIN, Jan 12 (Reuters) - Germany is experiencing an alarmingly high number of company bankruptcies, a development that shows no sign of abating unless the government immediately provides tangible relief, the German Chamber of Commerce, or DIHK, warned on Monday.
Current Bankruptcy Statistics
Final results showed that local courts registered a total of 2,108 insolvencies in October alone, an increase of 4.8% year-over-year, according to official statistics released on Monday.
Economic Factors Contributing to Insolvencies
"Month after month, we are seeing new records in corporate insolvencies. This is also the case in October 2025," said DIHK chief analyst Volker Treier. "We are experiencing the highest number of insolvency-related business closures in 11 years."
Call for Government Action
According to preliminary figures, insolvencies in December rose by 15.2% compared with the same month the year before.
TURNING THE TIDE
Germany's economy has remained stuck in a phase of meagre growth, and planned higher government spending will likely provide only limited momentum, according to economic institutes.
"To turn the tide on corporate insolvencies, the structural problems that companies are suffering from must be tackled as a matter of urgency," said Treier.
He called on politicians to immediately introduce tangible relief in terms of taxes, energy prices and bureaucracy.
"Only then will there be any prospect of the wave of insolvencies abating," he added.
(Reporting by Klaus Lauer, writing by Miranda Murray, editing by Thomas Seythal)
Frequently Asked Questions about German business lobby raises alarm over highest number of bankruptcies in 11 years
1What is bankruptcy?
Bankruptcy is a legal process that allows individuals or businesses unable to repay their debts to seek relief from some or all of their obligations.
2What is corporate insolvency?
Corporate insolvency occurs when a company cannot pay its debts as they come due, leading to potential legal proceedings for liquidation or restructuring.
3What is economic crisis?
An economic crisis is a situation in which the economy of a country experiences a sudden downturn, often characterized by a decline in GDP, high unemployment, and increased bankruptcies.
