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Gas power plant in Upper Bavaria
Photo: Armin Weigel/dpa
The number of standard insolvencies applied for rose sharply in March.
It increased by 27 percent compared to the previous month, as reported by the Federal Statistical Office on the basis of preliminary figures.
In February there had already been an increase of 4.2 percent compared to the previous month.
The authorities regard the number of standard insolvencies as a leading indicator that provides information on future developments, even if the data does not yet have the resilience of official statistics.
According to the Halle Institute for Economic Research (IWH), the current increase has nothing to do with the war in Ukraine, which began with the Russian invasion on February 24.
The main reason is the energy costs, which had already risen sharply before the outbreak of war.
The professional association of insolvency administrators VID confirms this statement.
"We see an increased need for advice - especially for energy-intensive companies," says VID boss Christoph Niering.
"Energy prices are threatening the existence of many companies." Even the energy cost subsidies planned by the federal government will not be able to prevent many insolvencies if prices continue to rise for a long time - especially in medium-sized companies.
The federal government had presented a package of measures to specifically help companies that are under pressure because of high energy prices and the consequences of the Russian attack on Ukraine.
Finance Minister Christian Lindner speaks of an economic shock absorber.
However, experts expect a further increase in insolvencies over the course of the year, also because special rules to prevent a wave of bankruptcies in the pandemic have expired.
Added to this are the economic consequences of the Ukraine war, which are not yet foreseeable.
Leading economic institutes had recently lowered their growth forecasts for Germany significantly.
ssu/dpa/Reuters
