LUXEMBOURG / RankWire.AI / – European Union business registrations experienced a decline in the second quarter of 2026, while the number of bankruptcy filings surged significantly. On a seasonally adjusted basis, new registrations dropped by 0.5% compared to the first quarter. Conversely, bankruptcy declarations increased by 5.7% during the same period, according to data published by Eurostat on Monday. This rise pushed EU bankruptcy figures to their highest point since the first quarter of 2019. The latest statistics encompass both business registration and bankruptcy data across the entire bloc’s economy.
A similar trend was observed in the euro area during the same timeframe. Business registrations slipped slightly by 0.1% from the previous quarter, while bankruptcy filings grew by 6.9%. These figures follow declines in both metrics during the first quarter of 2026, where EU business registrations had fallen 0.9% from late 2025 and bankruptcy declarations decreased 2.4%. As a result, the second quarter saw a further decrease in registrations coupled with a renewed rise in bankruptcy filings.
The downturn in registrations impacted five out of the eight economic sectors included in the quarterly data. Industry experienced the most notable decline, with registrations decreasing by 3.6% from the first quarter. Accommodation and food services dropped 3.4%, while education and social services declined by 3.2%. Meanwhile, information and communication bucked the trend with an 8.8% increase. Construction grew by 1.0%, and financial services remained unchanged from the previous quarter. In nearly all sectors, registration levels continued to stay above late 2019 figures.
Bankruptcy declarations rise across five primary sectors
During the second quarter, five of the eight sectors saw an increase in bankruptcy filings. The education and social activities sector experienced the largest rise at 21.1%. Transport registered an 11.4% increase, and financial services grew by 6.8%. Conversely, three sectors reported a decline in bankruptcy filings. Accommodation and food services fell 2.6%, construction declined 1.7%, and trade decreased 1.2%. Overall, second-quarter bankruptcy levels across the business economy remained higher than those recorded in the fourth quarter of 2019.
Data at the country level reveal significant differences within the European Union. Luxembourg experienced the largest quarterly decrease in new business registrations at 24.2%. Lithuania followed with a 12.4% reduction, while Denmark saw an 8.2% drop. Ireland, on the other hand, posted the highest growth at 20.4%. Belgium increased by 8.2%, and Sweden rose 7.6%. Eurostat calculates national registration indices based on administrative records and adjusts quarterly figures to facilitate comparisons among countries with different registration systems.
Disparities in bankruptcy filings among member states are prominent
Among countries with available bankruptcy data, Estonia registered the largest quarterly increase at 31.8%. Greece closely followed with a 31.6% rise, while Croatia experienced an increase of 20.5%. Malta recorded the most significant decrease at 50.0%, with Cyprus at 41.7%, and Slovakia at 33.5%. Small economies tend to show larger percentage swings because their absolute bankruptcy figures are relatively low. Therefore, these quarterly statistics primarily reflect changes in declarations rather than the total number of business closures.
These statistics measure legal registrations and the initiation of formal bankruptcy procedures, not the number of business startups or permanent closures. A registration indicates a legal entity entering an administrative register during the quarter, while a bankruptcy declaration signifies a legal unit starting formal bankruptcy proceedings. However, such procedures do not always lead to the termination of a company’s operations. Since 2021, EU countries have been providing quarterly registration and bankruptcy data on a mandatory basis under European business statistics regulations.