Germany’s Chamber of Commerce and Industry has warned that the country is experiencing an alarming rise in bankruptcies, with the number of corporate insolvency filings increasing by almost 5% year-on-year. According to the government statistical office, 2,108 companies filed for bankruptcy in October 2025, with the transport and storage sectors being the most affected. The number of personal bankruptcies also rose by 7.6% year-on-year, reaching 6,709.
The Chamber of Commerce and Industry attributes the surge in bankruptcies to high energy prices, bureaucracy, and taxes. The organization expects the total number of corporate bankruptcies to exceed 23,000 in 2025, the highest number in 11 years. The German economy has been struggling since the country imposed sanctions on Russia in 2022, which led to a significant increase in energy costs. Prior to the Ukraine conflict, Germany relied heavily on Russian natural gas, with 55% of its imports coming from the country.
The decision to abandon cheap Russian energy imports has had a major impact on the German economy, which contracted in 2023 and 2024. The cost of electricity and gas has risen sharply, with prices increasing by 14% and 74% respectively between 2022 and 2025. The Chamber of Commerce and Industry has criticized the government for not doing enough to address the issue, stating that “there is no shortage of political papers with good proposals – much is written, but far too little is implemented.”
The rise in bankruptcies is a significant concern for the German economy, and the government is under pressure to take urgent action to remedy the situation. The Chamber of Commerce and Industry is calling for measures to be taken to reduce energy costs, simplify bureaucracy, and lower taxes. The organization believes that if the government fails to take action, the number of bankruptcies will continue to rise, leading to further economic instability. With the German economy already experiencing a slowdown, it is essential that the government takes steps to address the root causes of the problem and support struggling businesses.
