Rising Business Bankruptcies in Brandenburg Prompt Diverse Solutions

The economic landscape in Brandenburg is facing challenges as an increasing number of businesses file for bankruptcy. Recent statistics indicate that there were 3,680 insolvencies reported in the past year, representing a rise of approximately nine percent compared to the previous year. This surge in bankruptcies has affected over 3,176 employees, more than doubling the number from the prior period. These developments have sparked a debate regarding the strategies needed to support the local economy.

Wirtschaftsminister Daniel Keller from the SPD emphasizes the need for growth stimuli to reverse this trend. He believes that the federal government's multi-billion-euro special fund for infrastructure can play a significant role in revitalizing the economy, particularly benefiting the construction sector. Keller notes that a resurgence in construction would also positively influence the steel and building materials industries.

In contrast, the AfD party views the rise in insolvencies as a critical warning sign. René Springer, the party's state chairman, argues that soaring energy prices, excessive bureaucracy, and lack of planning security are particularly detrimental to small and medium-sized enterprises. He advocates for significant changes, including lowering energy costs, reducing bureaucratic burdens, and providing targeted relief for the middle class, while also calling for an end to sanctions against Russia, which he believes are harmful to the economy.

One of the contentious points in the discussion is the sanctions against Russia, particularly regarding the cessation of Russian oil imports for the PCK refinery in Schwedt. Keller asserts that a return to Russian oil imports is contingent upon achieving peace between Russia and Ukraine and lifting the European Union sanctions against Russia. The BSW, a coalition partner of the SPD, is also calling for an end to the oil embargo.

In response to the challenges posed by high energy costs, Keller has indicated that both the Union and SPD are working towards reducing energy prices, which includes plans for lowering electricity taxes and network charges. Furthermore, he stresses the importance of decreasing bureaucratic obstacles for businesses. An initiative is underway in Brandenburg to raise the threshold for direct public procurement for construction and services from 1,000 euros to 100,000 euros, a move intended to simplify processes for companies.

Insolvency proceedings aim to equitably distribute the remaining assets of debtors among their creditors. This situation underscores the critical need for effective economic policies to ensure the sustainability of businesses in the region.