Despite success insolvent? SME structural crisis or comeback? Germany on the scabbard of the economy – Image: Xpert.digital
System change in the rope pull pattern: Germany's rescue plan for the economy
The German economic crisis 2025: between bankruptcy wave and investment hope
The German economy is currently experiencing one of the most difficult phases since the post -war period. What started as a economic weakness has now developed into a profound structural crisis that shakes the country's economic foundation. Despite the investment summit in the Chancellery and the announcement of billions of investments by the “Made for Germany” initiative, the bare numbers speak a clear language: Germany is in an unprecedented stagnation.
Bureaucracy, energy costs and tariffs kill companies as well as bad management. But some bankruptcies have their own stories
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The dramatic figures of the insolvement wave
The dimension of the current corporate crisis is relentlessly disclosed by the insolvency statistics. 22,400 companies registered bankruptcy in 2024 – the highest level since 2015. This corresponds to a dramatic increase of 24.3 percent compared to the previous year. The doubling of the claims of the creditors from 32.4 billion euros in 2023 to 64.9 billion euros is particularly alarming.
For 2025, experts forecast the situation further tightening. The institute of the German economy expects around 25,800 insolvency cases – a new increase by 15 percent. Germany could soon reach insolvency numbers near the maximum of the financial crisis in 2009/2010 when over 32,000 companies went into bankruptcy.
The development not only affects individual industries, but runs across all sectors. Traffic and storage with 11.3 bankruptcies each are particularly hard, followed by 10,000 companies, followed by the construction industry and hospitality with 9.8 cases each. An upward trend can also be observed in consumer solutions: in 2024, 72,100 new procedures were registered – an increase of 8.5 percent.
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The silence dying of medium -sized businesses
While the insolvency statistics already draw an alarming picture, it hides an even more threatening development: the silent dying of German middle class. Around 196,000 companies have closed 2024 permanently – an increase of 16 percent compared to the previous year. Nine out of ten corporate tasks are not done for over -indebtedness, but out of lack of prospects.
The numbers of the KfW Mittelstandspanel reveal the full extent of the crisis: 231,000 entrepreneurs are already planning the decommissioning of their companies for 2025 – that is 67,500 more than in the previous year. In the medium term, within three to five years, a further 310,000 entrepreneurs consider the closure. The main reason is often the age of the owner: the average age is 54 years, 39 percent of entrepreneurship is even 60 years or older.
This demographic time bomb meets a dramatic lack of successor. At the moment there are less than half as many takeover as followers. The result: decades of know-how and economic substance are irretrievably lost.
The multi -layered causes of the crisis
Contrary to public perception, the much -discussed energy costs are not the main drivers of the crisis. A comprehensive study by DSW and Advyce & Company shows that energy costs only make up four percent of the transformation pressure. The real problems are deeper:
Wage and structure costs
form the greatest crisis factor with 31 percent. The producer prices for commercial products have increased by 40 percent since 2020, while German export prices only increased by 20 percent in the same period. German companies are less and less competitive internationally.
Regulator and bureaucracy follows 24 percent as the second largest stress factor. Companies despair of endless applications, unclear requirements and a regulatory thicket that suffocates innovation and growth. DIHK chief feralyst Volker Treier rightly demands: “Down with the bureaucracy!”.
The tightened international competition (21 percent) and the shortage of skilled workers (20 percent) complete the problem spectrum. The shortage of skilled workers in particular has achieved a historical record level: 86 percent of German companies are fighting for talents – more than twice as many as in 2014.
Three years of stagnation – Germany at a standstill
The economic reality is sobering: Germany is without any significant economic development before the third year in a row. For 2025, experts expect stagnation with 0.0 to 0.4 percent growth at best. The employer -related institute of the German economy even predicts only 0.1 percent growth after two years of recession.
The Bundesbank no longer expects growth for 2025 and has reduced its forecast from originally 0.2 percent to zero percent. The EU Commission also predicts stagnation for Germany after predicting an increase of 0.7 percent in autumn.
The location of the industry is particularly dramatic. This is deep in the recession and is dramatically badly utilized. The investment crisis continues unabated: the failures in gross investment investments have been around 210 billion euros since the beginning of 2020. Four out of ten companies want to invest 2025 fewer.
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The bright spot: “Made for Germany” Initiative
In the middle of these dark forecasts, the investment summit in the Chancellery ensured a glimmer of hope. 61 leading companies have come together in the “Made for Germany” initiative and announced investments of 631 billion euros by 2028. A three -digit billion -dollar amount of this is eliminated by new investments.
Participating companies include German groups such as BMW, Mercedes-Benz, Siemens, SAP and Deutsche Bank as well as international investors such as Nvidia, Blackrock and Blackstone. The initiative was launched by Christian Sewing (Deutsche Bank), Roland Busch (Siemens), Mathias Döpfner (Axel Springer) and Alexander Geiser (FGS Global).
Chancellor Friedrich Merz
was optimistic: "Germany is back, it is worth investing in Germany again." He spoke of one of the greatest investment initiatives that Germany has seen in recent decades.
However, companies build their investment commitments to structural reforms: less regulation, more freedom for companies and more space for innovation. Siemens boss Busch put it like this: "Germany needs a new operating system – geared towards growth, technology and competitiveness."
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Structural challenges require structural answers
The current crisis is more than an economic mood – it is the result for years deprived of structural problems. Michael Grömling from the German Economy Institute sums it up: "This has long been no longer a economic mood, but a serious structural crisis."
The challenges are complex: the geopolitical turnaround with trade conflicts and tariffs, the decarbonization of the economy, demographic change and an overwhelming bureaucracy stress. These factors overlap and strengthen each other.
Demographic change in particular acts as a silent but powerful force. In the next few years, there will be strong birth vintages in retirement, while at the same time there are weak birth year. The shortage of skilled workers will continue to worsen, even if the current economic weakness is currently dampening it a little.
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The way out of the crisis
In order to find out from the crisis, courageous structural reforms are required. The Federal Government's 500-billion euro assets for infrastructure and climate protection is a first step. But more is needed: a corporate tax reform, incentives to expand the work volume, massive investments in infrastructure and defense as well as the serious degradation of unnecessary bureaucracy.
The new CDU/CSU SPD coalition has committed itself to these tasks. Whether she has the courage to break with old properties and enforce the necessary reforms will decide whether Germany finds the connection to the international top or remains in stagnation.
The “Made for Germany” initiative shows that the confidence of the economy in Germany is still there. Now politics has to deliver. Time is urging – because while the discussions are running, dozens of companies close their gates forever every day. Germany stands at the scabbard between decline and the new beginning.
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