10.07.2026 - “Corporate insolvencies reached yet another tragic record high in April, hitting the highest level in 14 years. Business reports indicate that the coming months will also bring a dire scenario for many companies. One in five companies is now struggling with liquidity shortages. Among small and medium enterprises with up to 20 employees, this figure rises to 23%. The situation is particularly grave in the hospitality sector, where nearly one in ten companies faces the risk of bankruptcy. These data from the latest German Chamber of Commerce and Industry (DIHK) economic survey of over 23,000 businesses illustrate how serious the situation has become.

The federal government must finally take decisive action. Companies need noticeable relief from labour and energy costs, consistent reduction of bureaucracy, and faster planning and permitting processes. The recently approved reform package includes many positive steps, particularly in reducing bureaucracy. 

However, the proposed income tax increases are deeply disappointing. These disproportionately affect many SMEs, which are already grappling with significant funding constraints. Such measures deprive companies of resources for investments, innovation, and job creation. If we aim to halt the wave of insolvencies, we must not impose further financial burdens on businesses. Companies need more liquidity now, not less.”