Latest news with #MiloBogaerts
Gulf Insider
5 days ago
- Business
- Gulf Insider
"Worse Than The 2008 Financial Crisis" – Germany Becomes A Nation Of Bankruptcy With No End In Sight
Germany is bracing for a continued surge in major insolvencies throughout 2025 and even 2026, according to a recent analysis by credit insurer Allianz Trade. This all comes after a disastrous 2024, which saw a record-breaking number of bankruptcies in the country. Allianz Trade forecasts an overall increase of 11 percent in corporate insolvencies in Germany this year, reaching approximately 24,400 cases. A further 3 percent rise to 25,050 cases is anticipated for 2026. These insolvencies put an estimated 210,000 jobs at risk across Germany. In the first quarter of this year, 16 large German companies—those with revenues of €50 million or more—filed for insolvency. While this is a slight decrease of three cases compared to the same period last year, it's double the number recorded in the first quarter of 2023. Milo Bogaerts, CEO of Allianz Trade in Germany, Austria, and Switzerland, expressed concern over the persistently high number of major insolvencies, attributing it partly to U.S. President Donald Trump's tariff policy. He warned that no respite is expected, even after 2024, which was a record-breaking negative year for insolvencies. 'Given the bleak economic outlook both in Germany and in global trade, and the many uncertainties caused by the tariff storm, we expect many major insolvencies and thus significant losses to continue in 2025,' Bogaerts stated. He added that these large-scale insolvencies will likely have a ripple effect on supplier companies, potentially creating 'particularly large holes in their coffers' and impacting supply chains. However, alarm bells are ringing across the country. The Federal Association of German Industry (BDI) published a declaration by more than 100 associations at the beginning of April where they directly addressed the ruling CDU and SPD. At the time, they were still working on a coalition agreement. The BDI stated: 'In the past few weeks, the economic situation has deteriorated dramatically. The facts are undeniable. Germany is in a serious economic crisis. A comparison with other countries shows that this crisis is primarily homemade.' The BDI is also apparently unhappy with the coalition's details on tax policy. 'In terms of tax policy, the coalition lags behind what is necessary. In the future, every scope must be used to relieve companies in order for the tax burden to quickly become internationally competitive,' said Tanja Gönner, BDI's general manager. 'The contract rightly formulates an ambitious modernization agenda for the state and administration, which must now also be followed by a determined implementation…. The bottom line is that we will measure the federal government by whether it will make the state more efficient and modernized.' 🇩🇪🚨 Ford Germany plans to cut 4,000 jobs as Berlin's economic disaster continues to unfold."The entire automotive industry is in crisis all over the world, in Europe and especially in Germany. This transition to electro-mobility is hitting us very, very hard." — Remix News & Views (@RMXnews) November 22, 2024 Click here to read more…
Yahoo
09-05-2025
- Business
- Yahoo
Trump's tariffs on China put jobs in Germany in danger, analysis says
The trade war between the US and China is putting tens of thousands of jobs in Germany at risk, according to insurer Allianz Trade. Exporters from China are likely to push into the European market, and particularly into Germany, if the US and China fail to reach a compromise, according to an analysis seen by dpa. US President Donald Trump announced the US was imposing blanket tariffs of at least 10% on all imports to the country, plus additional levies for a host of trading partners, triggering significant turbulence in the stock and financial markets. While many of the planned tariffs were suspended to allow for trade negotiations, special tariffs of up to 145% remain in place on Chinese goods and Beijing retaliated with tariffs of up to 125% on US products. Chinese companies are likely to try to find other sales markets for their goods, the analysis said, which would increase competitive pressure on German companies at home and abroad as supply will increase. Some 14% of Chinese exports relocated elsewhere could end up in Germany over the next three years, Allianz Trade said, saying this meant goods worth some $33 billion. "The US tariffs are leading to significant shifts in trade flows almost everywhere in the world," said Milo Bogaerts, head of Allianz Trade in Germany, in a statement. Between 17,000 and 25,000 jobs in German industry are at risk if goods are relocated, with mechanical engineering, the textile industry and companies that make household goods and sanitary products all areas which could see job losses, the analysis said. Companies that produce electronics, computers and vehicles would also be affected. Southern Germany could be particularly hard hit, as it is home to a relatively large number of industrial companies manufacturing such products.
