Sectors such as construction, retail, and services were particularly affected. The financial impact was substantial: in Europe alone, €208 billion in revenue was lost due to these bankruptcies, a 12 percent increase compared to 2024. On average, each bankruptcy involved a company with annual revenues of approximately €440 million. Notably, the fourth quarter showed a clear spike, with €66 billion in lost revenue during the final three months of the year.
Core economies hit hardest
Within Europe, Germany, Italy, France, and the United Kingdom stand out. Germany recorded the highest number with 94 large bankruptcies, followed by the United Kingdom (56), Italy (65), and France (49). According to Allianz Trade, these figures are not coincidental. Many of these economies rely heavily on specific industrial sectors — such as Germany’s automotive industry — and have been experiencing declining investment levels and weakening business confidence.
Johan Geeroms, Director of Risk Underwriting Benelux at Allianz Trade, points to a buildup of structural challenges. The aftermath of the COVID-19 pandemic, the war in Ukraine, and the resulting surge in energy prices have placed businesses under pressure for years. On top of that, he cites European indecisiveness and the absence of a strong industrial policy. Europe lacks access to strategic raw materials and a clear long-term direction, making it particularly vulnerable.
Competitive pressure and domino effects
Western European companies have also seen their competitive position weaken due to relatively high energy prices and stricter environmental regulations compared to other regions. Energy-intensive industries such as chemicals, metals, and construction have been especially affected.
Geopolitical shifts are adding further strain. As the United States partially restricts access to its market for Chinese goods, some of these exports are being redirected to Europe, increasing price pressure and the risk of dumping. At the same time, a relatively strong euro against a weaker dollar has made European exports significantly more expensive, further squeezing margins and volumes for export-oriented firms.
According to Allianz Trade, large bankruptcies also increase the risk of domino effects. Major companies typically operate within extensive supplier and subcontractor networks. When one collapses, entire supply chains can be affected — particularly in sectors such as automotive, transport, and construction.
The Netherlands performing better — But warning signs remain
Against this challenging European backdrop, the Netherlands has so far been a relative exception. In 2025, the number of bankruptcies declined by approximately 15 percent compared to the previous year. This suggests the Dutch economy may be recovering more quickly than many of its neighbors.
Part of this resilience can be attributed to the generous government support provided during the pandemic, which temporarily prevented a wave of insolvencies. However, Geeroms cautions against excessive optimism. Lower figures do not mean the risks have disappeared. The Netherlands experienced a delayed adjustment process, and many companies still operate with limited financial buffers after years of high inflation, rising interest rates, and elevated costs. From a historical perspective, the overall bankruptcy level remains elevated.
Outlook
Allianz Trade expects the number of bankruptcies in the Netherlands to decline further in 2026 and 2027, provided economic conditions stabilize. Nevertheless, caution remains warranted. The European economy faces structural choices regarding energy policy, industrial strategy, and international competitiveness. Without a clear and coordinated direction, Western Europe may remain vulnerable to major corporate bankruptcies in the years ahead.
Sources: allianz-trade.com, nu.nl, BNR.nl
Photo: Shutterstock
