der  Staatsbankrott

C1

Estimated CEFR level.

/ʃtaːtsbaŋˈkʁɔt/

🏛️ What exactly is a 'Staatsbankrott'?

Der Staatsbankrott translates to state bankruptcy or sovereign default. It signifies the inability of a state to meet its financial obligations, such as repaying debts or paying public sector salaries. It's a severe event with far-reaching economic and political consequences.

The word is masculine, so it's always der Staatsbankrott.

🧐 Grammar Spotlight: Der Staatsbankrott

The noun 'Staatsbankrott' is masculine. It is generally used only in the singular, as the plural (multiple state bankruptcies) is rarely the focus, although grammatically possible ('die Staatsbankrotte').

Declension Singular

Note: The genitive and dative endings -(e)s and -(e) are optional; the shorter forms are more common.

Example Sentences

• Die Furcht vor dem Staatsbankrott lähmte die Märkte. (Fear of state bankruptcy paralysed the markets.)
• Historiker analysieren die Ursachen des Staatsbankrotts von Argentinien. (Historians analyse the causes of Argentina's sovereign default.)
• Ein Land am Rande des Staatsbankrotts benötigt oft internationale Hilfe. (A country on the brink of state bankruptcy often needs international aid.)
• Die Regierung versucht mit allen Mitteln, den Staatsbankrott abzuwenden. (The government is trying by all means to avert state bankruptcy.)

💬 When to use 'Staatsbankrott'?

The term Staatsbankrott is primarily used in the fields of economics, politics, and news reporting. It describes an extreme financial crisis of a country.

• Context: Discussions about sovereign debt, economic crises, international financial aid, historical events.
• Formality: It's a rather formal term used in expert discussions and reporting. Colloquially, you might hear 'Staatspleite' (state insolvency/bust).
• Distinction: It's important to distinguish it from corporate bankruptcy ('die Insolvenz'). A 'Staatsbankrott' has much broader and more political dimensions. There is no formal insolvency procedure like for companies; the consequences often involve debt restructuring, political upheavals, or currency reforms.

🧠 Mnemonics and Memory Aids

Remembering the Article: Think of DER Staat (the state, masculine) going bankrupt. DER leader of the state announces the bankruptcy. This helps remember 'der Staatsbankrott'.

Remembering the Meaning: Staat (state) + Bankrott (bankrupt) = When the state is so bankrupt it can't pay its bills.

🔄 Similar and Opposite Terms

⚠️ Note: While 'Staatspleite' is often used interchangeably, 'Staatsbankrott' carries a slightly more formal and serious connotation.

😂 A Little Joke

Fragt der Finanzminister den Kanzler: „Was ist schlimmer als ein Staatsbankrott?“

Der Kanzler überlegt: „Keine Ahnung.“

Der Finanzminister: „Wenn man danach immer noch dieselben Berater hat!“

--- Translation ---

The Finance Minister asks the Chancellor: "What's worse than state bankruptcy?"

The Chancellor thinks: "No idea."

The Finance Minister: "When you still have the same advisors afterwards!"

📜 A Poem on the Topic

Der Staatshaushalt, ein Kartenhaus,
Die Schulden wachsen, welch ein Graus.
Zinsen steigen, Einnahmen klein,
Der Staatsbankrott bricht bald herein.
Die Kassen leer, das Volk verzagt,
Ein schwerer Schlag, hat man gesagt.

--- Translation ---

The state budget, a house of cards,
Debts grow, what dreadful regards.
Interest rises, income small,
State bankruptcy will soon befall.
Coffers empty, the people despair,
A heavy blow, beyond compare.

❓ Riddle Time

Ich bin ein Zustand, den kein Land sich wünscht,
Wenn Schulden drücken und kein Geld mehr rinnt.
Minister schwitzen, Börsen sind beklommen,
Die Kassen leer, das Ende ist gekommen.

Was bin ich?

--- Translation ---

I am a condition no country desires,
When debts oppress and money flow expires.
Ministers sweat, markets are distressed,
Coffers empty, the end is manifest.

What am I?

Solution: der Staatsbankrott (state bankruptcy)

💡 Interesting Tidbits

Word Composition: The word is clearly composed of 'Staat' and 'Bankrott'.

• Staat: Refers to the political and administrative entity of a country (state).
• Bankrott: Originally from Italian ('banca rotta' – broken bench/table), referring to the practice of breaking the table of a money changer who became insolvent (bankrupt).

Historical Examples: Sovereign defaults ('Staatsbankrotte') are not uncommon in history. Examples range from France in the 18th century and Russia after the revolution to more recent cases like Argentina or Greece.