LUXEMBOURG / RankWire.AI / – European Union business registrations experienced a decline in the second quarter of 2026, while the number of bankruptcy filings surged sharply. On a seasonally adjusted basis, new business registrations decreased by 0.5% compared to the first quarter. During the same period, bankruptcy declarations rose by 5.7%, based on data from Eurostat published on Monday. This upward trend pushed EU bankruptcy counts to their highest point since the first quarter of 2019. The latest data encompass both new registrations and bankruptcy filings across the EU’s business sector.
A similar trend was evident in the euro area during the same period. Business registrations dipped by 0.1% from the previous quarter, while bankruptcy declarations grew by 6.9%. These figures follow declines in both areas during the first quarter of 2026, where EU business registrations had fallen 0.9% from late 2025, and bankruptcy declarations had decreased 2.4%. The second quarter thus marked another dip in new business setups alongside a notable increase in bankruptcy filings.
The contraction in registrations was observed in five of the eight economic sectors included in the quarterly analysis. The manufacturing sector experienced the largest reduction, with registrations down 3.6% from the previous quarter. Accommodation and food services saw a 3.4% decrease, while education and social services declined by 3.2%. Conversely, information and communication saw an 8.8% rise in registrations. Construction activity increased by 1.0%, and financial services remained unchanged quarter-on-quarter. In nearly all sectors, registration levels stayed above late 2019 figures.
Bankruptcy rates climb across five key sectors
During the second quarter, bankruptcy filings rose in five of the eight sectors analyzed. Education and social activities recorded the largest increase at 21.1%. Transport saw an 11.4% jump, with financial services increasing by 6.8%. Meanwhile, three sectors experienced a decline in bankruptcy filings. Accommodation and food services dropped by 2.6%, construction declined 1.7%, and trade decreased 1.2%. Overall, the second quarter’s bankruptcy figures remained above those documented in the fourth quarter of 2019 across the entire business landscape.
Country-specific data revealed significant variation within the EU. Luxembourg recorded the largest quarterly drop in new business registrations at 24.2%. Lithuania followed with a 12.4% decline, and Denmark saw an 8.2% decrease. Ireland led the growth side with an increase of 20.4%. Belgium experienced an 8.2% rise, and Sweden’s registrations went up by 7.6%. Eurostat calculates national registration indices using administrative data and adjusts quarterly figures to facilitate comparisons across countries with differing registration systems.
Differences in bankruptcy declarations among EU nations are pronounced
For countries with accessible bankruptcy data, Estonia experienced the largest quarterly increase at 31.8%. Greece closely followed with a 31.6% rise, while Croatia reported a 20.5% increase. Conversely, Malta saw the most significant decline at 50.0%, with Cyprus at 41.7%, and Slovakia decreasing by 33.5%. Smaller economies can display large percentage changes due to their relatively low absolute bankruptcy figures. Consequently, these quarterly statistics highlight fluctuations in declarations rather than total business closures.
The data reflect legal registrations and the initiation of formal bankruptcy procedures, rather than completed business closures or new business formations. A registration indicates a legal entity entering the relevant administrative system during the quarter. A bankruptcy declaration signifies a legal entity beginning formal insolvency proceedings. However, such procedures do not always result in the end of a company’s operations. Since 2021, EU member states have been providing quarterly registration and bankruptcy data on a mandatory basis, following European business statistics regulations.