Germany

Germany's labor market showed new signs of stress as unemployment rose sharply in March, marking the steepest monthly increase since October 2024, DW.com reported. The number of jobless individuals rose by 26,000 in seasonally adjusted terms, bringing the total to 2.92 million, the Federal Labor Office reported on Friday. The figure more than doubled analysts' forecasts of an increase of 10,000. The seasonally adjusted unemployment rate climbed to 6.3%, up from 6.2% the previous month — also slightly above market predictions.

The real estate sector in Berlin is facing significant challenges, with one of its prominent figures, Nikolaus Ziegert, recently filing for bankruptcy, The Munich Eye reported. This development highlights the ongoing difficulties within the housing market, which is not only affecting tenants but also the businesses operating within the industry. Nikolaus Ziegert, who began his career as a florist specializing in selling roses, transitioned to real estate in 1985 when he sold his first condominium in Steglitz for 800 Deutsche Marks per square meter.

German restaurant chain Sausalitos has filed for bankruptcy after more than 30 years of operation, MAGL reported. The company cites a decline in profitability and changes in customer behavior as the reasons for its insolvency. Despite its insolvency, the company seeks a new investor to return "at the right time." The restaurant chain is considered a leader in the Mexican-American gastro-bar concept in Germany and is known for its cocktail bars and Tex-Mex cuisine.

Europe’s economic engine might finally be shifting into gear, as a rebound in German manufacturing and easing price pressures across the euro area offered a glimmer of hope that the continent’s economy could be turning a corner, EuroNews.com reported. The latest business surveys, known as Purchasing Managers’ Indexes (PMIs), revealed that the eurozone's private sector expanded for a third consecutive month in March.

Germany is witnessing a significant rise in corporate bankruptcies, with 2024 marking a 22.4% increase in insolvency filings compared to the previous year, the Munich Eye reported. This surge has raised concerns among experts, with predictions of an impending wave of insolvencies in 2025 potentially surpassing those seen during the financial crisis of 2009. According to the Federal Statistical Office, February alone saw a 12.1% increase in bankruptcy filings compared to the same month in the previous year.

The European Central Bank has given UniCredit (CRDI.MI), opens new tab the green light to buy up to 29.9% of Commerzbank (CBKG.DE), opens new tab, the Italian bank said, adding it would likely wait until next year before deciding whether to pursue a full takeover, Reuters reported. With Germany up in arms against the potential acquisition, UniCredit's CEO Andrea Orcel, a veteran dealmaker, has thrust his bank into fast-moving Italian consolidation and put on ice his ambitions for a pan-European tie-up.

The German women's fashion brand Gerry Weber filed for insolvency with a court in western Germany on Tuesday and is seeking to once again undergo restructuring, DPA International reported. The aim of the proceedings is to continue the company as a going concern. Lucas Flöther has been appointed as administrator for the insolvency, according to the company. A new owner is now being sought and dpa has learned that initial talks are already under way. The company employs just under 230 people in Germany.

Industrial production in Germany showed tentative signs of improvement at the start of the year, though that could be threatened by potential U.S. trade tariffs, the Wall Street Journal reported. Output increased 2.0% on month in January, German statistics agency Destatis said Monday, compared with a 1.5% decline in the final month of 2024. Economists polled by The Wall Street Journal expected a 1.5% increase in January. There are signs the industrial recession of recent years is fading.

Germany’s embattled manufacturing industry faces a fresh slump after new orders plunged by 7pc between December and January, The Telegraph reported. Machinery orders dropped more than 10pc on the month, while “other transport equipment” – the category including planes, ships, trains and military vehicles – plunged by almost 18pc. Consumer goods also slid 2pc.

The two political parties expected to form the next German government have agreed to loosen the country's constitution restrictions on borrowing, enabling 1 trillion euros ($1.08 trillion) or more in spending on defense and infrastructure, the Associated Press reported. It’s a major change in Germany’s debt-averse political culture, rejecting conventional economic wisdom that long dominated Europe’s biggest economy and one of the world’s wealthiest countries.