Bloomberg: About 3 million family-owned companies in Germany on the verge of collapse

WORLD, March 10 (YPA) – German authorities have revoked some subsidies for national businesses, which could potentially lead to the collapse of a significant number of family-owned companies that constitute the backbone of the German economy, according to Bloomberg agency.

Among the additional complications, the agency reported that the decision taken by the German Constitutional Court last year, which obliged the ruling coalition to halt excessive financing from outside the budget. Another issue hindering the work of small and family businesses is bureaucracy, which, according to entrepreneurs, complicates operations and distracts attention from daily tasks, along with rising energy prices, making work more difficult.

The agency noted that all these reasons, combined with the consequences of the COVID-19 pandemic, from which family businesses have not fully recovered yet, are driving Germans to sell their companies, which was extremely rare in the past.

According to the agency, this new trend in the German economy could lead to the collapse of around 3 million family-owned businesses in the country.

E.M