Many well-known German companies such as Römertopf, Ark, Eilless or Hussel have recently declared bankruptcy. But are these isolated cases or has Germany been hit by a big wave of bankruptcies?
Expert Reint Gropp, head of the Leibniz Institute for Economic Research Halle (IWH) believes that despite not expecting the number of bankruptcies to fall, he cannot say that there is a wave of bankruptcies.
The Association of Bankruptcy Administrators is something more specific.
“If we observe only the current period, it seems as if we have a wave of bankruptcies. But if we compare the current increase with previous periods, we can conclude that the number of bankruptcies is only at the levels before the pandemic and far from the maximum values in the financial crises,” the Association told Tagesschau, reported tportal.
In March 2016, 1,099 companies in Germany filed for bankruptcy, while in January this year 1,077 companies did so – roughly the same as in spring 2016.
State interventions kept companies alive during the pandemic, so especially now, in the post-pandemic period when there are no more state subsidies, a significant jump in the number of bankruptcies is felt.
“We are currently witnessing a major structural change in the economy: a transition from old technologies and energy sources, from dirty to green energy,” says Gropp.
All this burdens companies and some business models are no longer competitive.
The construction industry is particularly affected, which, in addition to high costs due to the green transition, suffers from high energy prices, as well as from rising interest rates and problems in supply chains.
In total, 81 construction companies filed for bankruptcy last year, and as a result, many projects across Germany were halted.
