German Business Insolvencies Surge in July
German business insolvencies rose sharply in July, increasing by 19.2% compared to the same month last year, according to preliminary data from the German statistics office released on Monday.
The jump in corporate failures underscores the economic challenges facing Chancellor Friedrich Merz’s government as it seeks to boost growth in Europe’s largest economy.
Insolvency Filings Often Lag Behind
The statistics office noted that many insolvencies recorded in July were actually initiated around three months earlier, reflecting a delay between filing and official registration.
May Data Shows Smaller Rise
Final figures for May showed a 5.3% year-on-year increase in business insolvencies. However, despite the rise in cases, the total volume of creditors’ claims dropped to €3.2 billion ($3.73 billion) in May 2025, down from €3.4 billion in May 2024.
