14.04.2026 - “The year has started with a further record high in corporate insolvencies. This January, the number of businesses forced to shut down due to insolvency reached its highest level in 11 years. For many companies, cost pressures have reached a point where financial reserves are no longer sufficient. Without rapid and substantial cost reductions, further record-breaking negative trends threaten to follow in the coming months.

Already before the war in the Middle East, energy costs were a major business risk for nearly half of all companies, according to the DIHK economic survey. Alarming is the fact that the burden spiral has recently accelerated. The energy price shock and supply chain disruptions are pushing costs further upward, and any easing of this situation appears unlikely in the near term.

This is precisely why decisive economic policy action is now required. The current decision by the coalition committee to lower energy taxes on diesel and petrol for two months is a step in the right direction. However, companies also need further relief measures that will have a lasting impact. As such, electricity taxes for all companies should be permanently reduced to the European minimum level. This would provide planning security and help to create room for investments.

Reducing energy bill burdens would ease the economic strain not just on industrial SMEs but also on the hospitality sector and numerous energy-intensive service providers. Additionally, relief measures to address labour costs are urgently required – nearly 60 per cent of companies now see these as a serious business risk.

Insolvency trends overall underline one key point: it’s not enough to hope for an economic recovery or relaxation of international markets. Companies need bold economic policies now to achieve a lasting reduction in cost burdens and enable new investments. Only if businesses regain some breathing space can we prevent the insolvency wave from continuing to sweep across the wider economy.”