German collapses hit record high

By Daily Mail Reporter
Updated: 18:00 EST, 17 April 2002

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HIGH taxes and red tape are driving German businesses to the wall in record numbers, it has been revealed. The country suffered more insolvencies in the first quarter of this year than at any time in its history - including the years of the depression that destroyed democracy in the 1920s.

There were 14,500 filings for bankruptcy compared with 5,000 for the previous year, said Buergel, a business research company.

Industry leaders blamed the plight of Germany's medium-sized companies - credited with rebuilding the country after the Second World War - on Chancellor Gerhard Schroeder's Left-wing government.

Mario Ohoven, president of the Confederation of Medium to Small Businesses, said: 'Schroeder promised reform and all we have still are obstructionist policies. Companies are going bust at a catastrophic rate and no one seems to care.'

Compounding Germany's difficulties is the threat of national strikes by the powerful IG Metall union.