German Business Lobby Warns of Highest Corporate Bankruptcy Levels in 11 Years

Germany is facing an alarmingly high number of corporate bankruptcies, a trend that shows no sign of easing unless the government moves quickly to provide concrete economic relief, the country’s leading business lobby warned on Monday.

Final figures show that local courts recorded a total of 2,108 corporate insolvencies in October alone, representing a 4.8% increase compared with the same month a year earlier.

“Month after month, we are seeing new records in corporate insolvencies. This was also the case in October 2025,” said Volker Treier, the chief analyst at the German Chamber of Commerce. “Germany is currently experiencing the highest number of insolvency-related business closures in 11 years.”

Preliminary data indicate that insolvencies continued to accelerate toward the end of the year, with December filings rising by 15.2% compared with December of the previous year.

Turning the Tide

Germany’s economy has remained stuck in a period of weak growth, and planned increases in government spending are expected to provide only limited economic stimulus, according to economic assessments.

“To reverse the surge in corporate insolvencies, the structural problems weighing on companies must be addressed urgently,” Treier said. He urged policymakers to introduce immediate and tangible relief measures, particularly in the areas of taxation, energy costs, and administrative burdens.

“Only then will there be a realistic chance of slowing the current wave of business failures,” he added.