CroatiaThe number of bankruptcies in Germany continues to rise, raising concerns about whether this signals deep structural weaknesses in the economy or a necessary market correction that could ultimately benefit growth. According to a study by the Leibniz Institute for Economic Research (IWH), the bankruptcy rate among partnerships and trading companies in June was 80% higher than the average for June between 2016 and 2019, before the coronavirus pandemic. These entities account for 90% of jobs affected by insolvency and 95% of unpaid claims. In the second quarter of 2026, the number of corporate bankruptcies reached the highest level in the last twenty years, according to Steffen Müller, head of bankruptcy research at IWH. The German economy has been struggling for years, and the expected recovery for this year is likely to result in only weak growth. Major companies like Volkswagen, ZF, and Bosch have announced plans to cut hundreds of thousands of jobs over the next few years. While some argue that bankruptcies can lead to positive outcomes by freeing up labor and capital for more productive sectors, others warn of the challenges posed by rising unemployment and demographic shifts.
Bias read (Center): The article presents both perspectives—concerns about structural economic weakness and arguments that bankruptcies might represent a necessary market correction. It cites data from academic institutions and includes quotes from researchers without overtly favoring one viewpoint over another. There’s
