Bankruptcy Leads to Workers in Monterey Valley Facing Economic Turmoil
In a recent statement, Sahra Wagenknecht, a prominent politician from the BSW party, has attributed the current insolvency wave and rising unemployment in Germany to the 'utterly absurd economic policy of the federal government.'
According to the Federal Statistical Office, the number of company insolvency applications in the first half of 2025 increased by 12.2% compared to the same period in 2024. This trend is reflected in the total number of company insolvencies reported in Germany, which reached 22,400 in 2024 - the highest number since 2015. This year, the number of company insolvencies could peak at over 32,000 cases, surpassing the crisis year of 2009.
The insolvency-related dismissals have also seen a significant rise. In 2023, the number stood at 2,067, while in 2022 it was 3,218. The highest number of dismissals was recorded in January 2024, with 1,812 people losing their jobs, and the second-highest number was recorded in May, with 530.
Wagenknecht has been vocal in her criticism of the traffic light coalition, Robert Habeck, the current Minister for Economic Affairs and Climate Action, and the previous economics minister, Peter Altmaier (Merz). She believes that their policies are leading to deindustrialization, with high energy costs and rampant bureaucracy choking the middle class. Wagenknecht refers to the current situation as a 'Merzcession,' a toxic mix of ever-increasing public debt, a shrinking economy, and rising unemployment.
The insolvency procedure for the municipal utility in Laage, located in the Rostock district, was initiated due to ever-increasing debt. The goal is to maintain jobs and successfully restructure the company. Similarly, the Neubrandenburg care service Wilma also filed for insolvency due to economic burdens from the past.
The transport and warehousing sector has been the most affected, with 52.3 insolvencies per 10,000 companies, followed by the hospitality and construction industries. In Mecklenburg-Western Pomerania, 3,980 employees lost their jobs due to company bankruptcies in 2024.
As Germany navigates through this economic crisis, the focus remains on finding solutions to stabilise the economy and provide support to those affected by insolvencies and job losses.
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