Bankruptcies are at their highest levels, families are becoming poor — and Merz still has no plan.
Germany is witnessing a sharp rise in bankruptcy cases and household debts; however, Chancellor Friedrich Merz has not presented a clear economic plan after seven months in office. Companies across the country are struggling, and citizens are feeling financial pressure.
The Jewish hospital in Berlin recently filed for bankruptcy after 260 years of operation, while the historic porcelain brand Könitz and the wood processing company Mocopinus collapsed under financial pressure. Small businesses account for 81% of bankruptcies, while more than 140 major companies have been affected, threatening over 285,000 jobs this year.
According to the Ifo Institute, investment expectations fell to minus 9.2 points in November, indicating that companies are pulling back on future investments. Major companies like Bosch, VW, Bayer, MAN, and Mercedes are relocating their operations or downsizing, reflecting a significant shift in the German industrial landscape.
The Merz government has halted the necessary structural reforms, postponing tax cuts and easing bureaucracy. The measures passed so far, such as the partial tax exemption for passengers or volunteers, only address the symptoms without enhancing investment or stabilizing the middle class. 70% of citizens express dissatisfaction with the federal government.
The cost of living is rising, pushing families into more debt, with 5.67 million people considered excessively indebted. Experts warn that Germany urgently needs comprehensive economic measures including tax cuts, reducing energy costs, decreasing bureaucracy, and restoring confidence in the market economy. Without decisive action, the country may face further deterioration and loss of recovery opportunities.