BERLIN—Germany would relax insolvency rules under proposals set out Sept. 19 to help avert a wave of bankruptcies in Europe’s biggest economy, provided companies hit by the coronavirus crisis have a robust business model.
Keen to avoid bankruptcies and mass layoffs, Chancellor Angela Merkel’s government has begun a range of stimulus and relief measures as Germany braces for its biggest slump since World War II, having shrunk by an unprecedented 9.7 percent in the second quarter.
