In 2025, the number of corporate insolvencies in Europe continued to rise, reaching the highest level in more than 20 years in Western Europe. According to Creditreform economic research data, a total of 197 610 corporate insolvencies were registered in Western Europe, which is 4.8% more than in 2024. The situation is driven by weak global trade growth, geopolitical risks, high energy costs, and an increasing administrative burden on businesses.

- Insolvencies continue to rise in most European countries

In 2025, corporate insolvencies increased in the majority of Western European countries. The sharpest rises were observed in Switzerland (+35.3%), Greece (+24.4%), Finland (+12.1%) and Germany (+8.8%). The economic challenges in these countries are also affecting the overall business environment across the region. At the same time, some countries, such as the Netherlands (-14.7%), Ireland (-7.2%), and Norway (-5.2%), recorded a decline in insolvency cases.

- The services sector faces the greatest pressure

The largest increase in insolvencies in 2025 was observed in the services sector, where the number of business bankruptcies rose by 8.7%. In manufacturing, the increase reached 3.6%, while in trade and hospitality it amounted to 3.0%. In contrast, the construction sector showed signs of stabilization, with insolvencies increasing by only 0.1%. The weak economic environment and prolonged price increases negatively affected consumer sentiment, which in turn created challenging operating conditions for retail and service companies.

- Eastern Europe shows slight improvement

Unlike Western Europe, Eastern European countries experienced an overall decline in corporate insolvencies in 2025, decreasing by 7.1% to 36 939 cases. A reduction was recorded in eight out of twelve analyzed countries. The sharpest declines were observed in Croatia (-19.4%) and Serbia (-12.4%), while Poland saw only a marginal decrease (-0.6%).

However, in several countries (including Bulgaria (+15.9%), the Czech Republic (+11.5%), Slovenia (+5.3%), and Romania (+3.8%)) the number of insolvencies continued to rise. In Turkey, corporate insolvencies increased by 6.0%, reaching a total of 34 546 company liquidations. Despite positive trends in parts of Eastern Europe, insolvency levels remain high in many sectors, particularly construction and services.

- The United States: highest level since 2020

In 2025, the United States also saw an increase in corporate insolvencies, reaching the highest level in the past five years. Compared to 2024, the number of insolvency cases rose by 5.3%, reaching a total of 31 810 cases. The financial situation of companies was negatively affected by high borrowing costs and a more cautious bank lending policy, which made it more difficult for businesses to stabilize.

- Outlook for 2026 remains cautious

The outlook for 2026 remains uncertain, but corporate insolvencies in Europe are likely to continue rising. High financing costs, weak economic growth, and geopolitical uncertainty continue to pose significant risks to business activity.

The full report is available at the following link: https://www.creditreform.de/aktuelles-wissen/pressemeldungen-fachbeitraege/news-details/show/unternehmensinsolvenzen-in-europa-jahr-2025