LUXEMBOURG / RankWire.AI / – European Union saw a decline in new business registrations during the second quarter of 2026, while bankruptcy filings surged sharply, according to Eurostat data released on Monday. The number of new business registrations decreased by 0.5% from the first quarter on a seasonally adjusted basis, whereas bankruptcies increased by 5.7% over the same period. This uptick pushed EU bankruptcy figures to their highest point since the first quarter of 2019. The latest statistics encompass data on registrations and bankruptcies across the entire business sector of the bloc.
A similar pattern emerged in the euro area during the same period. Business registrations dipped 0.1% from the previous quarter, while bankruptcy declarations climbed 6.9%. These figures follow declines in both categories during the first quarter of 2026. In late 2025, EU business registrations had already fallen 0.9% compared to the previous quarter, with bankruptcy filings dropping 2.4%. Consequently, the second quarter experienced another decrease in registrations alongside a renewed rise in bankruptcy filings.
The reduction in registrations affected five out of the eight sectors analyzed in the quarterly data. Industry experienced the largest decline, with registrations dropping 3.6% from the first quarter. Accommodation and food services decreased by 3.4%, and education and social services saw a 3.2% fall. Conversely, information and communication registered an 8.8% rise. Construction grew modestly by 1.0%, while financial services remained unchanged quarter-over-quarter. Despite these shifts, most sectors maintained registration levels above those seen in late 2019.
Increase in Bankruptcies Observed in Five Key Sectors
During the second quarter, bankruptcy filings rose in five of the eight sectors. Education and social activities experienced the most significant increase at 21.1%. Transport recorded an 11.4% rise, and financial services grew by 6.8%. Meanwhile, three sectors reported a decline in bankruptcy declarations. Accommodation and food services declined by 2.6%, construction by 1.7%, and trade by 1.2%. Overall, bankruptcy levels in the business economy during the second quarter remained above those recorded in the fourth quarter of 2019.
Country-specific data revealed significant variation across the EU. Luxembourg experienced the largest quarterly decrease in new business registrations at 24.2%. Lithuania followed with a 12.4% drop, and Denmark saw an 8.2% reduction. Conversely, Ireland registered the most considerable growth at 20.4%. Belgium increased by 8.2%, and Sweden rose 7.6%. Eurostat calculates national registration indices from administrative data and adjusts quarterly figures to facilitate comparisons among countries with different registration systems.
Significant Disparities in Bankruptcy Declarations Among Countries
Among nations with available bankruptcy data, Estonia reported the largest quarterly increase at 31.8%. Greece followed with a 31.6% rise, while Croatia saw a 20.5% increase. Malta experienced the most notable decrease, dropping 50.0%, with Cyprus at 41.7% and Slovakia at 33.5%. Smaller economies tend to show larger percentage swings because their absolute bankruptcy numbers are relatively low. Therefore, these quarterly figures primarily indicate changes in declarations rather than the total number of businesses shutting down.
These statistics reflect legal registrations and the initiation of formal bankruptcy proceedings, not the total number of new businesses or permanent closures. A registration marks a legal entity entering the administrative register during the quarter, while a bankruptcy declaration indicates the start of a formal insolvency process. Not all bankruptcy procedures result in a company’s closure. Since 2021, EU countries have been providing quarterly registration and bankruptcy data on a mandatory basis under European business statistics regulations.