German Business Collapse Hits 20-Year High, 170,000 Jobs at Risk

A record number of German companies declared bankruptcy last year. New data shows 17,605 businesses failed in 2025. This is the highest total since 2005. The bankruptcies put approximately 170,000 jobs in immediate danger. Experts point to several ongoing pressures. High energy costs, increased interest rates, and weak global demand have created a difficult environment. Many companies, especially smaller ones, could not survive these combined challenges. The figures indicate a significant weakening in Europe's largest economy. The widespread business failures threaten to slow economic growth further. Policymakers are now under pressure to respond. The data will likely intensify debates on how to support struggling German industries.