The number of bankruptcies among enterprises in Western Europe has reached a record high, with multiple countries facing severe situations.

Korean Media: Bankruptcy Numbers of Western European Companies Hit All-Time High!

On June 15, South Korean media outlet iNews24 published an article stating that Creditreform, a German credit rating and corporate information company, announced that the number of bankruptcies among Western European companies reached approximately 197,610 in the previous year.

This represents a 4.8% increase compared to the prior year, marking the highest level since data collection began in 2002. The number of corporate bankruptcies has risen for the fourth consecutive year.

Patrick-Ludwig Hantsch, Head of Economic Research at Creditreform, assessed the results, saying: "This is not merely a cyclical issue, but a signal of structural crisis," adding that "slowing global trade and geopolitical risks are putting pressure on European businesses."

Furthermore, the report highlights that compared to the United States and China, high energy costs and complex bureaucratic systems in Western Europe are undermining the competitiveness of its enterprises.

In terms of country breakdown, Switzerland saw the largest increase. The number of business bankruptcies in Switzerland surged by 35.5% compared to the previous year, primarily due to the impact of legal amendments implemented early last year, which tightened enforcement of public debt collection and relaxed bankruptcy criteria.

Bankruptcy numbers also rose significantly in Greece (24.4%), Finland (12.1%), and Germany (8.8%). Particularly in Germany, the largest economy in Europe, the number of corporate bankruptcies exceeded 24,000 last year—reaching its highest level since 2014.

On the other hand, research found that the number of company bankruptcies declined in some countries such as the Netherlands, Ireland, and Norway.

By industry, services were hit the hardest. Bankruptcies in the service sector increased by 8.7% year-on-year, manufacturing by 3.6%, and retail and tourism by 3.0%. The construction sector showed relatively stable growth, rising only by 0.1%.

Creditreform predicts that due to prolonged wars in the Middle East causing ongoing energy price instability, the upward trend in corporate bankruptcies is likely to continue this year.

Original source: toutiao.com/article/1868025534276810/

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