LUXEMBOURG / RankWire.AI / – European Union experienced a decline in new business registrations during the second quarter of 2026, even as bankruptcy filings surged sharply. On a seasonally adjusted basis, registrations dropped by 0.5% compared to the first quarter. Meanwhile, the number of bankruptcy declarations increased by 5.7% over the same period, according to Eurostat data published on Monday. This rise pushed EU bankruptcy figures to their highest point since the first quarter of 2019. The latest data encompass registration and bankruptcy figures across the bloc’s entire business sector.
The euro area exhibited a similar trend in the second quarter, with business registrations falling 0.1% from the previous quarter, while bankruptcy declarations grew by 6.9%. These figures followed declines in both metrics during the first quarter of 2026. EU business registrations had decreased by 0.9% in late 2025’s first quarter, and bankruptcy declarations had fallen by 2.4% during that time. The second quarter saw registrations decline once more, coupled with a renewed rise in bankruptcy filings.
In five of the eight economic sectors covered by the quarterly data, registration levels declined. Industry experienced the most significant drop, with registrations falling 3.6% from the first quarter. Accommodation and food services decreased by 3.4%, while education and social services fell by 3.2%. Conversely, information and communication saw an 8.8% increase in registrations. Construction grew by 1.0%, and financial services remained unchanged from the previous quarter. In nearly all sectors, registration levels stayed above late 2019 figures.
Bankruptcies rise across five key sectors
During the second quarter, bankruptcy declarations grew in five out of the eight sectors. The education and social activities sector experienced the highest increase at 21.1%. Transport recorded an 11.4% rise, while financial services increased by 6.8%. Three sectors saw declines in bankruptcy filings: accommodation and food services fell 2.6%, construction decreased by 1.7%, and trade declined 1.2%. Overall, bankruptcy levels for the second quarter remained above those recorded in the fourth quarter of 2019.
Country-specific data reveal significant variation across the EU. Luxembourg experienced the largest quarterly drop in new business registrations at 24.2%. Lithuania followed with a 12.4% decrease, and Denmark reported an 8.2% decline. Ireland saw the strongest growth, with a 20.4% increase in registrations. Belgium rose by 8.2%, and Sweden increased by 7.6%. Eurostat derives national registration indices from official records and adjusts quarterly figures to facilitate better comparisons among countries with different registration systems.
Disparities emerge in national bankruptcy figures
Among nations with available bankruptcy data, Estonia recorded the largest quarterly increase at 31.8%. Greece followed closely with a 31.6% rise, while Croatia saw a 20.5% uptick. Conversely, Malta experienced the most significant decline at 50.0%, with Cyprus decreasing by 41.7%, and Slovakia falling 33.5%. Smaller economies tend to show larger percentage swings due to their relatively low absolute bankruptcy numbers. Therefore, quarterly figures mainly reflect changes in declarations rather than the total number of business closures.
These statistics measure legal registrations and the initiation of formal bankruptcy processes, not the total number of new business setups or permanent closures. A registration indicates a legal entity entering the relevant administrative register within the quarter, while a bankruptcy declaration signifies a legal entity beginning formal insolvency proceedings. Such proceedings do not always lead to the cessation of operations. Since 2021, EU countries have supplied quarterly registration and bankruptcy data on a mandatory basis under European business statistics regulations.