LUXEMBOURG / RankWire.AI / – European Union business registrations saw a decline in the second quarter of 2026, while the number of bankruptcy filings surged significantly. On a seasonally adjusted basis, new business registrations dropped by 0.5% compared to the first quarter. Meanwhile, bankruptcy declarations rose by 5.7% during the same period, according to data published by Eurostat on Monday. This uptick brought EU bankruptcy figures to their highest levels since the first quarter of 2019. The latest data encompass both new business registrations and bankruptcy filings across the entire EU business landscape.
The euro area experienced a comparable trend in the second quarter. Business registrations decreased slightly by 0.1% from the previous quarter, whereas bankruptcy filings increased by 6.9%. These figures follow declines observed in both metrics during the first quarter of 2026. Specifically, EU business registrations had fallen by 0.9% in the first quarter compared to late 2025, with bankruptcy declarations decreasing by 2.4% during that period. The second quarter thus saw a renewed downturn in registrations alongside a notable rise in bankruptcy filings.
The decrease in registrations affected five of the eight economic sectors covered by the quarterly report. Industry experienced the most significant drop, with registrations falling by 3.6% from the previous quarter. Accommodation and food services declined by 3.4%, while education and social services decreased by 3.2%. Conversely, the information and communication sector saw an 8.8% increase in registrations. The construction sector grew by 1.0%, and financial services remained unchanged from the previous quarter. In nearly all sectors, registration levels stayed above late 2019 figures.
Bankruptcy filings rise across five key sectors
During the second quarter, five of the eight sectors experienced an increase in bankruptcy declarations. The education and social activities sector reported the largest rise at 21.1%. Transport registered an 11.4% growth, and financial services saw a 6.8% rise. Three sectors, however, experienced declines in bankruptcy filings. Accommodation and food services declined by 2.6%, construction fell by 1.7%, and trade decreased by 1.2%. Overall, second-quarter bankruptcy levels across the EU business economy remained above those recorded in the fourth quarter of 2019.
Country-specific data revealed considerable variation within the EU. Luxembourg experienced the largest quarterly decrease in new business registrations, down 24.2%. Lithuania followed with a 12.4% decline, and Denmark reported an 8.2% decrease. Ireland showed the strongest growth, with registrations increasing by 20.4%. Belgium’s figures went up by 8.2%, and Sweden recorded a 7.6% increase. Eurostat calculates national registration indices using administrative records and adjusts quarterly figures to facilitate comparison among countries with differing business registration systems.
Distinct national trends emerge in bankruptcy declaration data
Among nations with available bankruptcy data, Estonia experienced the largest quarterly increase at 31.8%. Greece closely followed with a 31.6% rise, while Croatia saw a 20.5% increase. Conversely, Malta recorded the largest decrease at 50.0%, with Cyprus at 41.7%, and Slovakia at 33.5%. Due to the relatively low absolute numbers of bankruptcy filings in smaller economies, percentage changes can appear more dramatic. These quarterly figures primarily reflect changes in declarations rather than the total number of businesses closing permanently.
The statistics track the registration of legal entities and the initiation of formal bankruptcy procedures, not the total number of new business formations or permanent closures. A registration indicates that a legal unit has entered the relevant administrative register during the quarter, while a bankruptcy declaration signifies a legal unit beginning a formal bankruptcy process. It should be noted that such procedures do not always result in the immediate end of a company’s operations. Since 2021, EU countries have been providing quarterly data on registrations and bankruptcies on a mandatory basis in accordance with European business statistics regulations.