A bad economic situation in Europe persists and causes an increase in the number of bankruptcy. Creditreform credit agency reports about 230 thousand bankruptcies of companies on the continent in 2024. This is the highest number since 2013. The latest analysis shows that these numbers increased in 24 of 29 analyzed countries, in particular in Poland, Greece, Ireland, Spain and the Netherlands, but also in Germany, Austria and Switzerland.
-The crisis reaches companies-says Patrik-Ludwig Hantzsch, head of the Economic Research Department at Creditreform. – We observe clear dynamics in the number of cases.
Creditreform gives high interest rates and energy prices, generally poor demand and geopolitical uncertainty as the reasons for this. “It strains the stability of many companies,” says Gerhard Weinhofer, managing director of Creditreform in Austria. Small and medium -sized enterprises, which often have small financial reserves, are particularly affected.
“Three years of stagnation and economic breakdown affect not only Germany,” adds Hantzsch. Companies practically did not have the opportunity to revive and continue to develop. – Europe suffers from poor economic development.
The growing number of bankruptcies can no longer be explained by the effect of catching up from the time of Coronavirus, when Many countries have supported their economies with aid programsand even suspension of the obligation to submit bankruptcy.
Continuation of the material under the video
Bankruptcy focus in Western Europe – over 190 thousand cases. Compared to the previous year, 12.2 percent were recorded. More bankruptcy of enterprises, and the increase compared to the lowest point in 2021 amounted to as much as 70 percent, according to the analysis.
“Western Europe was one of the lost crisis years from Coronavirus,” explains Hantzsch.
More and more sectors in trouble
The construction industry is one of the most affected sectors. Just In Eastern European countries, this sector is responsible for every other insolvencyand in Western Europe – for every fifth.
“Rising construction costs, high financing costs and weakening demand increase economic pressure to the sector,” he explains in the Creditreform report. The number of insolvency in the service sector increased last year WO 14.2 percent, and in industry by 9.3 percent. According to Hantzsch it dangerous for the German economy. This is because it affects German machinery shops, which form the basis of the business export model.
– there are insolvency An element of the market economy. They are even an important mechanism for eliminating inefficient structures – explains the economist. – However, in Germany, on the occasion of bankruptcies, a lot is lost in the manufacturing industry, be it production capacity or important specialist knowledge.
Disturbances in many areas of industry also play a role here. – It is important now that identify working models And focus on them to get out of this transformation phase – sums up Hantzsch.
Kzenon / Shutterstock
Break in the work of workers. Illustrative photo
For now, however, the situation remains tense. Creditreform forecasts a further increase in the number of insolvency Both in Germany and all over Europe. – In 2025 we expect similar dynamics as in [roku] the previous one – admits Hantzsch, referring, for example, to Germany, where the number of bankruptcy increased by 30 percent. Already in the first quarter. However, these numbers are far from record levels from the 2008/2009 financial crisis.
“The number of cases alone is not enough to assess the situation,” Hantzsch reserves.
It is more important to look at the consequences such as number of endangered jobs or financial losses for creditors. Both key indicators have deteriorated significantly in recent years and, despite fewer cases, are currently approaching the level of financial crisis. – In particular, in Germany there was an increase in the number of large and significant insolvency, which are associated with large money and many jobs.
Trump's duties complicate the situation
The fact that the mood cannot be completely calmed down also results from the new customs policy of the USA. – This will continue to influence – say Creditreform experts – especially in sectors such as motoring and mechanical engineering, but also in other sectors of export -oriented.
Both, however They are reluctant to share specific forecasts. The situation is too variable, and the policy of US President Donald Trump is too inconsistent. And fears of tariffs are also confirmed by the world's largest loan insurer, Allianz Trade.
PAP / EPA / KENT NISHIMURA / POOL / PAP
Donald Trump, US president, announces duties. Washington, April 2, 2025.
– IN trade war There are no winners – says Milo Bogoerts, head of Allianz Trade in Germany, Austria and Switzerland. -The global economy moans due to additional costs, even if the US government has granted European companies at least 90-day relief as a result of the new volt.
On the other hand, ongoing uncertainty is particularly severe for companies. “Trade flows will probably change, and global insufficiency will increase even more, especially in the US,” predicts Bogaerts. Allianz Trade expects you The number of bankruptcies in America will increase by 16 percent. Instead of earlier expected 11 percent
However, according to the analysis from mid -April, Western Europe will also face more bankruptcies due to customs. Bogaerts, however, believes that in Germany this growth will be a bit slower than in other countries: – The financial package for infrastructure and defense will consume some of the negative effects of American duties.
I’m Ashley Davis as an editor, I’m committed to upholding the highest standards of integrity and accuracy in every piece we publish. My work is driven by curiosity, a passion for truth, and a belief that journalism plays a crucial role in shaping public discourse. I strive to tell stories that not only inform but also inspire action and conversation.
