der Filz
felt
A dense, non-woven textile made from animal hair or other fibers using pressure, moisture, and heat.
Für meine Bastelarbeit habe ich einen Bogen aus grünem Filz gekauft.
For my craft project, I bought a sheet of green felt.

felt
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felt
A dense, non-woven textile made from animal hair or other fibers using pressure, moisture, and heat.
Für meine Bastelarbeit habe ich einen Bogen aus grünem Filz gekauft.
For my craft project, I bought a sheet of green felt.

You can recognize the meaning from context. If it is about crafts, clothing, or material, it refers to the fabric. In texts about politics or business where corruption is involved, the negative, figurative meaning is intended.
Für den Hut wurde dicker, grauer Filz verwendet.
Thick gray felt was used for the hat.
In its figurative meaning, 'Filz' (crony network) is a strongly derogatory word. It is used to sharply criticize opaque networks in politics or business that are perceived as unfair.
Die Opposition sprach von einem „Filz aus alten Freundschaften“, der die Vergabe von Aufträgen beeinflusse.
The opposition spoke of a 'network of old friendships' that was influencing the awarding of contracts.
When referring to the material, 'Filz' (felt) is often used with the prepositions 'aus' (made of/from) or 'mit' (with). Typical combinations are 'ein Hut aus Filz' (a hat made of felt), 'Pantoffeln aus Filz' (slippers made of felt), or 'mit Filz basteln' (to do crafts with felt).
Die Kinder haben im Kindergarten mit buntem Filz gebastelt.
The children did crafts with colorful felt at kindergarten.
In the figurative meaning, the structure 'ein Filz aus ...' (a crony network of ...) is often used to describe what the corrupt network consists of. Typical phrases are 'ein Filz aus Korruption' (a network of corruption), 'ein Filz aus Seilschaften' (a network of old-boy connections), or 'ein Filz aus Gefälligkeiten' (a network of favors).
Es herrschte ein Filz aus persönlichen Interessen und politischer Macht.
There was a crony network of personal interests and political power.
corruption
'Korruption' and 'Filz' can both describe dishonest structures in politics or business. 'Korruption' is the more general and more precise term when power is abused for private advantages, for example through bribery. 'Filz' refers more to an opaque network of relationships, favors, and personal advantages. The word is derogatory and often sounds somewhat journalistic or colloquial. They can be confused because 'Filz' is often understood as a form or environment of corruption. When it is about specific bribery, 'Korruption' fits better; when it is about close, opaque relationships, 'Filz' fits.

Viele Bürger ärgern sich über den Filz zwischen Politik und großen Unternehmen.
Many citizens are annoyed by the crony network between politics and large companies.
Nach der Kontrolle gab es mehrere Hinweise auf Korruption in der Firma.
After the inspection, there were several indications of corruption in the company.