Germany's Hospitality "Gastwelt" Warns of Insolvency Wave Without Swift VAT Relief
SHERIDAN, WYOMING - December 10, 2025 - Germany's service economy is facing its sharpest increase in corporate insolvencies in more than a decade, with hospitality, tourism and leisure businesses bearing a disproportionate share of the pain. In response to new 2025 insolvency figures from Creditreform, the Denkfabrik Zukunft der Gastwelt (DZG) is urging the Bundesrat to pass the Tax Amendment Act unchanged, including the reintroduction of the reduced 7% VAT rate on food, to stabilise one of the country's largest employment sectors.
Insolvency spike exposes deeper structural stress in services