LUXEMBOURG / RankWire.AI / – European Union saw a decline in new business registrations during the second quarter of 2026, while bankruptcies surged significantly. Seasonally adjusted data indicates a 0.5% drop in new business registrations from the first quarter. Over the same period, bankruptcy filings rose by 5.7%, according to data published by Eurostat on Monday. This increase pushed EU bankruptcy figures to their highest point since the first quarter of 2019. The latest statistics encompass both new registrations and bankruptcy declarations across the entire business sector within the bloc.
A comparable trend appeared in the euro area during the same quarter. Business registrations edged down by 0.1% from the previous quarter, while bankruptcy declarations grew by 6.9%. These figures followed decreases in both metrics during the first quarter of 2026, when EU business registrations had fallen by 0.9% from late 2025, and bankruptcy filings had dropped by 2.4%. Consequently, the second quarter experienced a further decline in registrations alongside a renewed rise in bankruptcy filings.
The drop in registrations affected five of the eight economic sectors included in the quarterly analysis. The industry sector experienced the largest decrease, with registrations falling 3.6% from the first quarter. Accommodation and food services declined by 3.4%, while education and social services saw a 3.2% decrease. Conversely, information and communication registered an 8.8% increase. Construction grew by 1.0%, and financial services remained unchanged from the previous quarter. In almost all sectors, registration levels stayed above late 2019 figures.
Bankruptcy filings rise in five key sectors
During the second quarter, bankruptcy declarations grew in five of the eight sectors analyzed. Education and social activities experienced the highest jump at 21.1%. Transport saw an 11.4% rise, while financial services increased by 6.8%. The remaining three sectors reported declines: accommodation and food services fell 2.6%, construction decreased by 1.7%, and trade dropped by 1.2%. Overall, second-quarter bankruptcy levels across the business economy stayed above those recorded in the fourth quarter of 2019.
Country-specific data revealed notable differences throughout the EU. Luxembourg experienced the largest quarterly decrease in new business registrations at 24.2%. Lithuania followed with a 12.4% decrease, and Denmark reported an 8.2% decline. Ireland stood out with the strongest growth, registering a 20.4% increase. Belgium saw an 8.2% rise, and Sweden grew by 7.6%. Eurostat derives national registration indices from administrative records, adjusting the quarterly figures to facilitate better comparisons across countries with diverse business registration systems.
Disparities in bankruptcy declarations across nations
Among countries with available bankruptcy data, Estonia recorded the largest quarterly increase at 31.8%. Greece followed closely with a 31.6% rise, while Croatia reported an increase of 20.5%. Malta experienced the most significant decrease at 50.0%, with Cyprus at 41.7%, and Slovakia at 33.5%. Small economies can display large percentage swings because their absolute bankruptcy numbers tend to be relatively low. Therefore, these quarterly figures reflect changes in declarations rather than the total number of closures.
The data tracks legal registrations and the initiation of formal bankruptcy proceedings, not the total number of new business formations or permanent closures. A registration indicates a legal entity being entered into the relevant administrative register during the quarter, while a bankruptcy declaration signifies a legal unit entering a formal bankruptcy process. This process does not always lead to the end of a company’s operations. Since 2021, EU countries have been providing quarterly data on registrations and bankruptcies based on mandatory reporting under European business statistics regulations.