Germany is witnessing a significant rise in business bankruptcies, marking a crucial shift in its economic landscape. As interest rates and credit costs increase, the artificially sustained "zombie economy" is crumbling. This zombie economy, not least also largely based in the so-called green economy, the subsidy wonderland of the green socialists in Europe, is now facing hard times. Thanks to the Federal Reserve, which is consistently keeping its interest rates high, this construct is coming under immense pressure.

The latest data from the Federal Statistical Office reveals a 26.5% rise in corporate bankruptcies and a 4.8% rise in consumer bankruptcies in Q1 2024 compared to the same period in 2023. Additionally, May 2024 saw a 25.9% increase in filed bankruptcies over May 2023, following a 28.5% rise in April.

This trend highlights the necessity of bankruptcies in fostering innovation and a healthy economy. The artificially low interest rates had long masked underlying weaknesses, but as rates normalize, only the robust enterprises will thrive.