Germany Faces Sharp Rise in Company Bankruptcies with Record Insolvency Rates Projected for 2026

Germany is bracing for a surge in company bankruptcies, with projections indicating 24,000 insolvencies in 2025—the highest since 2014—and an anticipated further increase to approximately 24,800 cases in 2026, marking a 3% rise, according to CRIF Deutschland. This troubling trend implies that every 20 minutes on average, a German company is forced to file for insolvency, underscoring mounting economic challenges.

Frank Schlein, managing director of CRIF, attributes the rise to a combination of soaring energy costs exacerbated by the Iran conflict, increasing bureaucratic hurdles, geopolitical uncertainties, and reduced consumer spending driven by higher living expenses. These factors have severely strained company finances and hampered investment and long-term planning.

Currently, over 322,000 companies—about 10.3% of all businesses in Germany—are classified as at risk of insolvency, up by 1.4 percentage points from the previous year. The issue is especially acute for younger firms: nearly 59% of bankruptcies involve companies less than ten years old, with the largest share among those aged five to six years. Regionally, Berlin shows the highest insolvency density with 117 bankruptcies per 10,000 companies, contrasting with Bavaria, which has the lowest at 56 per 10,000.

In absolute numbers, North Rhine-Westphalia leads the country with 6,502 insolvencies, followed by Bavaria and Baden-Württemberg. These patterns highlight vulnerabilities across multiple regions and sectors.

Volker Treier, chief analyst at the German Chambers of Industry and Commerce (DIHK), emphasized the severity of the situation, noting that one in ten companies faces insolvency risks, raising concerns over political responses to the rising wave of bankruptcies.

This widespread increase in insolvencies reflects the challenging environment for German companies amidst energy price shocks and geopolitical instability, making the upcoming years critical for business resilience and economic policymaking.