- Economic downturn marked by numerous bankruptcies in Thuringia's business sector
In the region of Thuringia, there's been a surge in businesses encountering financial hardships and falling into distress. The Statistical Office in Erfurt reports that the first half of the year saw a 18.1% increase in corporate insolvencies compared to the same period the previous year, affecting a total of 150 companies due to payment defaults or excessive debt.
The fate of 949 jobs is currently uncertain, hinging on the outcome of these insolvency proceedings. The Statistical Office estimates the amount owed to these companies' creditors, primarily suppliers and service providers, to be roughly 83 million euros.
Particularly in the construction sector, insolvencies have been common. With 31 cases, this sector had the highest number of incidents, with residential construction facing significant challenges. There were 22 insolvencies among service providers, 18 among car dealerships and workshops, and 17 cases in the industrial sector.
The Thuringian district courts handled a total of 1,099 insolvency proceedings from January to June 2024. This includes consumer insolvencies, estates, and cases involving formerly self-employed individuals. According to the Statistical Office, this is 65 fewer applications than the previous year. Nearly 93% of these proceedings were initiated, and 16 ended in a debt restructuring plan. The courts estimate the total creditor claims to be around 145 million euros.
Given the escalating financial struggles in the Thuringian businesses, there's a growing concern for the implementation of a more robust Economic and Monetary Union to stabilize regional economies. The construction sector, particularly hit hard, has seen 31 insolvencies, highlighting the need for a more integrated monetary policy.
