The ultimate guide to tax optimization of investments.

The ultimate guide to tax optimization of investments.

According to a report by welt.de,

The wave of insolvencies among construction companies - in the fatal frenzy of zero interest rates

The wave of insolvencies among construction companies is increasing in Germany, and experts are warning of the fatal effects of persistently low interest rates. More and more construction companies are running into economic difficulties and are having to file for bankruptcy. There are many reasons for this, but one thing is certain: the European Central Bank's ongoing low interest rate policy has triggered a fatal frenzy in the construction industry.

According to the welt.de report, the number of bankruptcies in the construction industry rose by 6.2 percent last year compared to the previous year. This development is worrying as the construction industry plays an important role in the labor market and the entire economy. The low interest rate policy means that many construction companies take on risky projects in order to make any profits. This significantly increases the risk of insolvency.

As an expert in the real estate market, it is important to me to point out the possible effects of this development. The rising wave of bankruptcies will lead to a decline in construction activity and a shortage of construction companies. This could cause prices for construction projects to rise, which in turn would put pressure on the real estate market. In addition, builders and buyers could also be affected, as the risks could impact the quality and completion of the construction projects.

It is therefore very important that European and national governments take measures to support the construction industry and stem the wave of insolvencies. A flexible monetary policy and targeted support programs could help to stabilize construction companies and mitigate the negative effects on the real estate market.