Story perspectives
German economy threatened as skilled trade bankruptcies surge
5/12/2026
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Story summary
- Business leaders who praised Chancellor Friedrich Merz now warn that Germany’s economy faces a threat.
- Merz’s first year saw a surge in skilled-trade bankruptcies, the highest since the crisis ten years ago.
- Industry groups say few reforms have been implemented and Germany is now seen as having a complex, costly bureaucracy.
- Merz acknowledged the mood, ruled out new elections, and pledged to keep the coalition with the Social Democratic Party.
