LUXEMBOURG / RankWire.AI / – European Union business registrations experienced a decline in the second quarter of 2026, while bankruptcy filings surged sharply. On a seasonally adjusted basis, new business entries dropped by 0.5% compared to the first quarter. During the same period, declarations of bankruptcy increased by 5.7%, according to data from Eurostat published on Monday. This rise pushed EU bankruptcy counts to their highest level since the first quarter of 2019. The latest figures encompass registration and bankruptcy data across the entire EU business landscape.
Similarly, the euro area saw a comparable trend in the second quarter. Business registrations slipped slightly by 0.1% from the previous quarter, whereas bankruptcy declarations rose significantly by 6.9%. These figures follow declines observed during the first quarter of 2026, when EU business registrations fell 0.9% from late 2025, and bankruptcy declarations decreased 2.4%. The second quarter, therefore, marked another decrease in new registrations alongside a renewed increase in bankruptcy filings.
The drop in registrations was observed in five of the eight economic sectors included in the quarterly data. Industry experienced the largest decline, with registrations decreasing by 3.6% from the first quarter. The accommodation and food services sector saw a 3.4% fall, while education and social services declined by 3.2%. Conversely, information and communication sectors recorded an 8.8% increase in registrations. Construction grew by 1.0%, and the financial services sector remained unchanged quarter-over-quarter. In nearly all sectors, registration levels stayed above late 2019 figures.
Bankruptcy declarations rise across five key sectors
During the second quarter, five of the eight sectors analyzed reported an increase in bankruptcy filings. Education and social activities experienced the largest jump at 21.1%. Transport saw an 11.4% rise, while financial services increased by 6.8%. Three sectors, however, recorded declines in bankruptcy declarations. The accommodation and food services sector fell 2.6%, construction decreased 1.7%, and trade declined 1.2%. Overall, bankruptcy levels in the EU business sector for the second quarter remained above those observed in the fourth quarter of 2019.
Country-specific data revealed notable disparities within the EU. Luxembourg experienced the steepest quarterly decline in new business registrations at 24.2%. Lithuania followed with a 12.4% decrease, and Denmark reported an 8.2% drop. Ireland stood out with the strongest growth, increasing registrations by 20.4%. Belgium rose 8.2%, and Sweden increased 7.6%. Eurostat calculates national registration indices based on administrative records and adjusts quarterly figures to facilitate comparisons across countries with different business registration systems.
National data highlight substantial variations in bankruptcy filings
Among nations with available bankruptcy information, Estonia recorded the most significant quarterly increase at 31.8%. Greece closely followed with a 31.6% rise, while Croatia reported a 20.5% increase. Malta experienced the largest decrease at 50.0%, with Cyprus down 41.7% and Slovakia dropping 33.5%. Small economies can show large percentage swings due to their relatively low absolute bankruptcy figures. Consequently, quarterly data primarily reflect changes in declarations rather than total business closures.
These statistics focus on legal registrations and the initiation of formal bankruptcy procedures, 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 signifies a legal unit entering a formal bankruptcy process. However, this process does not always culminate in the company ceasing operations. Since 2021, EU countries have been providing quarterly registration and bankruptcy data on a mandatory basis under European business statistics regulations.