No one wants Germany anymore: The wave of bankruptcies in 2026 shatters all records.
Germany is experiencing a historic bankruptcy crisis that is shaking its economy, as companies in various sectors have been affected by a deep recession that has lasted for three years. In 2026, corporate bankruptcies began to reach new record levels, the highest since the global financial crisis in 2009. According to the Halle Institute for Economic Research, around 17,604 bankruptcies were recorded in 2025, with expectations that the number will reach 24,000 companies next year. Losses on the creditors' side are estimated at around 57 billion euros.
Data from the Federal Statistical Office indicates that the number of bankruptcies in December 2025 increased by 15.7 percent compared to the same period of the previous year, confirming the continued negative trend with no signs of improvement. The reasons behind this crisis are numerous, most notably the rise in energy prices, increased bureaucratic costs, and the heavy tax burden on companies. These factors have transformed from mere cyclical crises into structural problems threatening the sustainability of industry in Germany.
Small and medium-sized enterprises are facing a severe crisis, as several well-known companies have withdrawn from the market, increasing pressure on the economy. The industrial sector, including chemicals and automotive manufacturing, is currently operating at less than 70 percent production capacity, which is not enough to achieve profits. Reports also indicate that international investors are refraining from investing in Germany, raising concerns about the recession worsening into an actual economic depression.
On the health front, many hospitals have begun to record catastrophic financial losses. Several of these hospitals are facing actual bankruptcy, threatening health services. The closure of hospitals, especially in rural areas, warns of serious gaps in care and forces local authorities to intervene financially to save them, which means that taxpayers bear the increasing financial burdens.
This wave of bankruptcies leads to a series of cascading effects, starting with the loss of thousands of jobs, many turning to job and welfare centers, and a decline in consumption. All of this increases the pressure on retail, leading to more shop and restaurant closures. Under these circumstances, there seems to be no radical or swift reforms capable of alleviating the economic burdens, which warns of a prolonged bankruptcy crisis and a loss of Germany's productive and innovative capacity.