The number of company bankruptcies is still not a cause for concern. However, in view of the exploding energy costs, the fear of bankruptcy is growing in companies, as a survey shows. Meanwhile, the Federal Ministry of Justice wants to give companies more freedom when filing for bankruptcy.
Business and politics are warning of a wave of bankruptcies in Germany in view of skyrocketing energy costs. A study by the industry association BDI states that this is a major challenge for 58 percent of companies, and for 34 percent it is a matter of survival. Only 23 percent had said the latter in February. Almost every tenth company has already reduced or even interrupted production. Almost every fourth company is considering or is already in the process of relocating company shares or parts of production and jobs abroad. “The federal government must implement a relief program for the economy as soon as possible,” demanded BDI President Siegfried Russwurm.
According to the ZDH industry association, the economic situation is also coming to a head in the skilled trades. “In the trades, a wave of bankruptcies is rolling towards us because of the energy crisis,” said ZDH President Hans Peter Wollseifer of the “Rheinische Post”. “Every day we receive emergency calls from companies that are about to shut down production because they can no longer pay the enormously increased energy bills.” The dynamics of bankruptcies are “much worse than in the peak phases of the corona pandemic”. According to his impression, the federal government does not have this on the screen at all. The state would now have to support particularly affected, energy-intensive companies directly with hardship aid.
The Ministry of Economic Affairs warns of the danger of “silent operational tasks”. Insolvencies are not the sole measure – these procedures served the purpose of maintaining businesses. However, businesses could also simply be closed without filing for bankruptcy because they were no longer worthwhile due to the high costs. This is a serious problem, especially for small and medium-sized companies. The ministry was reacting to statements by department head Robert Habeck late Tuesday evening, which were widely criticized.
CDU leader and opposition leader Friedrich Merz accused the Green politician in the Bundestag of acting helplessly. “One can only hope that the majority of German medium-sized entrepreneurs and above all the bakers were already in bed and asleep at this time and didn’t have to watch it.” Habeck had repeatedly spoken about bakeries and their problems.
When asked if he was expecting a wave of bankruptcies as a result of the exploding energy prices, Habeck said on ARD: “No, I’m not doing that.” However, there is a risk that certain companies would give up without filing for bankruptcy. In addition to the costs, this could be due to the reluctance of customers to buy, so that certain transactions are no longer worthwhile. “It’s a danger that we have to counter.” However, he did not say how this should be done.
According to the Halle Institute for Economic Research (IWH), the number of company bankruptcies is currently still stable. “Despite the energy crisis, supply chain problems and the gradual phasing out of Corona aid, the insolvency situation is still pleasingly robust,” said IWH specialist Steffen Müller. The number of insolvencies of partnerships and corporations was 709 in June and thus slightly below the previous months and almost exactly at the previous year’s level. No major changes are to be expected for July and August either. But the burdens on the companies would increase again significantly. These included the increase in the minimum wage to twelve euros in October, the turnaround in interest rates initiated by the European Central Bank (ECB) and further expected increases in energy prices.
Meanwhile, the Federal Ministry of Justice is planning short-term changes in insolvency law because of the exploding energy costs. “Companies that are healthy at heart and able to survive in the long term under the changed framework conditions will benefit from the change,” said a spokesman. “They should gain time to adapt their business models.” The heads of the traffic light coalition of SPD, Greens and FDP had agreed on Sunday to ease the obligation to file for insolvency. This will now be implemented quickly, said the spokesman for the responsible Ministry of Justice. A temporary relaxation of the obligation to file for insolvency due to over-indebtedness is planned.
“In contrast, the obligation to file an application for insolvency remains unaffected. According to current law, over-indebtedness can be considered if the continued existence of a company for a period of one year is no longer predominantly likely.” Given the current market conditions and uncertain developments, however, such a forecast is associated with difficulties even for healthy companies. “This period should therefore be reduced to four months.” This change would exempt over-indebted companies from the obligation to file an application for over-indebtedness if their continued existence over a period of four months was sufficiently probable.
