LUXEMBOURG / RankWire.AI / – European Union business registrations saw a decline in the second quarter of 2026, while bankruptcy filings surged significantly, according to new data. The number of new companies registering dropped 0.5% from the previous quarter on a seasonally adjusted basis, whereas bankruptcy declarations increased by 5.7% over the same period, as reported by Eurostat on Monday. This rise propelled EU bankruptcy levels to their highest point since the first quarter of 2019. The latest statistics encompass both new registrations and bankruptcy cases across the entire business sector of the bloc.
A similar pattern was observed within the eurozone during the same period, with business registrations edging down by 0.1% compared to the previous quarter, while bankruptcy filings increased by 6.9%. These figures follow declines in both indicators during the first quarter of 2026, when EU business registrations had fallen 0.9% from late 2025 and bankruptcy declarations had decreased 2.4%. The second quarter thus saw a further decrease in new business entries combined with a renewed rise in insolvency filings.
The downturn in registrations affected five of the eight economic sectors covered by the quarterly data, with industry experiencing the most significant decline, dropping 3.6% from the first quarter. Accommodation and food services decreased by 3.4%, and education and social services fell by 3.2%. Conversely, information and communication sectors saw an 8.8% rise in registrations, while construction grew by 1.0% and financial services remained unchanged from the previous quarter. Despite these shifts, registration levels stayed above those recorded in late 2019 in nearly all sectors.
Increase in bankruptcies observed across five key sectors
During the second quarter, five out of the eight sectors experienced an upward trend in bankruptcy declarations, with education and social activities witnessing the most substantial rise of 21.1%. Transport recorded an 11.4% increase, and financial services grew by 6.8%. Conversely, three sectors saw a decline in bankruptcy filings: accommodation and food services fell 2.6%, construction decreased 1.7%, and trade was down by 1.2%. Overall, the second quarter’s bankruptcy figures in the business economy remained above those seen in the fourth quarter of 2019.
Country-specific data revealed significant variations across the EU. Luxembourg experienced the most notable quarterly drop in new business registrations at 24.2%, with Lithuania following at 12.4%, and Denmark reporting an 8.2% decline. On the other hand, Ireland achieved the highest growth in registrations, increasing by 20.4%. Belgium saw an 8.2% rise, and Sweden grew by 7.6%. Eurostat calculates these national registration indices based on administrative records and adjusts the quarterly data to facilitate better comparisons across countries with differing registration systems.
Country-specific data reveal significant disparities in bankruptcy figures
Among nations with accessible bankruptcy data, Estonia experienced the largest quarterly jump at 31.8%, followed closely by Greece at 31.6%, and Croatia with an increase of 20.5%. Conversely, Malta saw the most considerable decrease at 50.0%, with Cyprus down 41.7% and Slovakia decreasing by 33.5%. It is important to note that smaller economies often display larger percentage swings due to their relatively low absolute bankruptcy figures, so these quarterly variations primarily reflect changes in declarations rather than actual closures of a large number of businesses.
The provided statistics track legal registrations and the initiation of formal bankruptcy proceedings, not the total number of new businesses or permanent closures. A registration indicates a legal entity entering the relevant administrative register within the quarter, while a bankruptcy declaration records a legal entity entering a formal insolvency process. Such processes do not always lead to the complete cessation of business operations. Since 2021, EU countries have been supplying quarterly data on registrations and bankruptcies on a mandatory basis, in accordance with European business statistics regulations.