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Business bankruptcies in Western Europe at the highest level since 2013
The permanent crises of the past few years are demanding tribute: more and more companies give up. The figures of the bankruptcies fell only in two Western European countries. An industry is particularly affected.
Significantly more company bankruptcies and the highest level in Western Europe since 2013: that is the bankruptcy balance of the past year. The credit agency Creditreform counts 190,449 cases – 12.2 percent more than a year earlier. And another increase is emerging.
“Three years of stagnation and economic dulls not only have Germany under control. Europe suffers from a weak economic development overall,” says Patrik-Ludwig Hantzsch, head of the Creditreform Economic Research.
Permanent crises do not leave any time to relax
Since the low point in 2021 with 112,686 corporate insolvencies, the number of company bankruptcies in Western Europe has increased by almost 70 percent – not only because of corona pandemic: increased energy prices, weak demand and geopolitical uncertainties are a burden for many companies. The permanent crises of the past few years give the companies little opportunity to recover and develop further.
Significantly more company bankruptcies everywhere in Western Europe
In 15 of the 17 Western European countries, which takes into account creditre reform in the analysis, the insolvency figures increased in the year. A little more than a third of the corporate bankruptcies in Western Europe were in France: 66,088. That is 17.4 percent more than a year earlier and sad record.
The figures in Greece (plus 42.5 percent to 2,012 cases) increased particularly clearly due to new legal regulations, as well as in Ireland (plus 32.0 percent/875 cases) and the Netherlands (plus 31.7 percent/3,782 cases).
According to Creditreform in Europe’s largest economy, 22,070 companies applied for bankruptcy last year, an increase of 22.5 percent in 2023: “Germany was one of the main drivers of bankruptcy in Western Europe.” The figures published by the Federal Statistical Office are somewhat lower due to a different count.
According to the Creditreform overview, fewer corporate bankruptcies than a year earlier only recorded Denmark (minus 11 percent on 6,181 cases) and Great Britain (minus 4.8 percent/25,116 cases).
Construction industry particularly affected
The construction industry, which recorded an increase of 15.4 percent, was most affected in 2024. Increasing construction costs, high financing costs and weakening demand increased the economic pressure on the industry. In the service sector, too, the number of bankruptcies increased above average with a plus 14.2 percent.
dpa
Source: Stern
