The latest economic figures for Berlin are dramatic, revealing that 2025 saw more companies file for bankruptcy than at any point in the last two decades, all despite a promised economic turnaround from the Christian Democrat (CDU) government.
The wave of insolvencies grew significantly toward the end of the year, affecting the lives of thousands of employees. According to the Leibniz Institute for Economic Research Halle, the annual total reached a historically high 17,604 bankruptcies. This translates to an average of 48 partnerships and corporations going out of business every day in Germany, according to Bild newspaper.
Instead of embracing mass immigration, China is rapidly replacing its workforce with robotics at an incredible pace.
Meanwhile, the pro-immigration EU is floundering. Macron was just in China calling for technology transfers, support and investment. pic.twitter.com/gmT26Udcx4
— Remix News & Views (@RMXnews) December 9, 2025“Even in the wake of the major financial crisis in 2009, the number was around 5 percent lower,” the institute explained.
December was particularly severe, with 1,519 insolvency applications filed. This figure was 75 percent higher than the average for December between 2016 and 2019, prior to the pandemic.
Jonas Eckhardt, an economic expert from the transformation consultancy Falkensteg, told Bild that “the German economy is no longer just struggling with headaches. She’s got a fever. That won’t change anytime soon.“
Professor Dr. Steffen Müller, Head of IWH Insolvency Research, observed that the “increase was broad and no one was spared, though sectors like hospitality, construction, and real estate suffered particularly heavily.”
He noted that the interest rate increase at the end of 2022 has put a stop to some of the plans in those industries.
Bild goes on to cite a number of companies hit with bankruptcies.
In Saxony, a sausage company dismissed its entire staff, while the Leifert bakery chain in Lower Saxony affected 220 employees with its insolvency. Other large bakeries like Hansen Mürwik also filed for bankruptcy, impacting 145 workers.
Large corporations are also struggling. A survey by Falkensteg found that 471 companies with annual sales exceeding 10 million euros filed for insolvency, a 25 percent increase over the previous year. Since 2021, these major insolvencies have nearly tripled.
Less than a week ago, Chancellor Friedrich Merz stated that parts of the German economy are in a “very critical state.” In the article from Bloomberg, it notes that while Merz did not specify which sectors, the car industry is seen as especially hard hit. This is due in large part to Chinese competition slowly crushing German companies, a topic Remix News has written extensively on.
While Müller points out that insolvency can be a market adjustment that makes room for future-proof companies, many businesses continue to struggle for survival. Jonas Eckhardt emphasized to Bild that for many medium-sized companies, the situation is no longer just an economic downturn but a question of survival. Experts do not anticipate a turnaround in 2026 and instead expect a further increase in bankruptcies among large companies.
Germany is not the only country struggling in Europe. Last month, French President Emmanuel Macron went to China essentially to beg for help, saying, according to Politico, that “European industry is facing a ‘life or death’ moment.”
“I am trying to explain to the Chinese that their trade surplus is untenable and that they are killing their own customers, mainly by not importing much from us,” Macron said, according to Politico.
Now, after Europeans complained about Trump issuing tariffs against China and Europe, Europe is considering pursuing the same tactic. At least, that is the threat Macron just issued China if the country does not refrain from relentlessly outcompeting the EU on trade, exports, and innovation.
Following the meeting in China, notably, no major business deals were signed, and on most key points, analysts say Macron walked away mostly empty-handed in regard to the major issues.
Remarkably, China almost completely rejected mass immigration and has about as many foreigners in the country as just one German city, Berlin.
