LUXEMBOURG / RankWire.AI / – European Union saw a downturn in new business registrations during the second quarter of 2026, while bankruptcy filings surged sharply, according to Eurostat data published on Monday. The number of new business registrations decreased by 0.5% compared to the first quarter on a seasonally adjusted basis, whereas bankruptcies increased by 5.7% over the same period. This surge pushed EU bankruptcy levels to their highest point since the first quarter of 2019. The latest figures encompass data on both new registrations and bankruptcy declarations across the bloc’s entire business sector.
The euro area mirrored this trend in the second quarter. Business registrations dipped by 0.1% from the previous quarter, while bankruptcy declarations rose by 6.9%. These figures follow declines observed during the first quarter of 2026, when EU business registrations fell 0.9% from late 2025, and bankruptcy declarations declined 2.4%. The second quarter thus saw a further decrease in registrations alongside a renewed rise in bankruptcy filings.
The reduction in registrations affected five of the eight economic sectors analyzed quarterly. Industry experienced the most significant drop with a 3.6% decline from the first quarter. Accommodation and food services also decreased by 3.4%, while education and social services saw a 3.2% decline. Conversely, information and communication registered an 8.8% increase. Construction grew by 1.0%, and financial services remained unchanged from the previous quarter. In nearly all sectors, registration levels remained above those recorded in late 2019.
Bankruptcy Filings Rise in Five Key Sectors
During the second quarter, five out of the eight sectors experienced an increase in bankruptcy declarations. The education and social activities sector reported the largest rise at 21.1%. Transport saw an 11.4% increase, and financial services rose by 6.8%. Three sectors experienced declines: accommodation and food services fell 2.6%, construction decreased 1.7%, and trade declined 1.2%. Overall, bankruptcy levels across the entire business economy in the second quarter remained above those recorded in the fourth quarter of 2019.
Country-specific data revealed significant differences across the EU. Luxembourg recorded the largest quarterly drop in new business registrations at 24.2%, followed by Lithuania with a 12.4% decline. Denmark experienced an 8.2% decrease, while Ireland showed the highest growth at 20.4%. Belgium increased by 8.2%, and Sweden rose by 7.6%. Eurostat estimates national registration indices based on administrative records, adjusting quarterly figures to facilitate comparisons between countries with differing registration systems.
Marked Variations in Bankruptcy Declarations Among Countries
Among nations with available data, Estonia experienced the largest quarterly jump at 31.8%. Greece followed closely with a 31.6% increase, while Croatia saw a rise of 20.5%. Malta reported the most significant decrease at 50.0%, with Cyprus down by 41.7% and Slovakia by 33.5%. Due to their smaller size, these economies can exhibit large percentage swings in bankruptcy figures, since their absolute numbers tend to be relatively low. The quarterly data reflect changes in bankruptcy declarations rather than the total number of business closures.
The statistics track legal registrations and the initiation of formal bankruptcy procedures but do not necessarily indicate the final closure of businesses or complete business births. A registration marks a legal entity entering the relevant administrative register during the quarter, while a bankruptcy declaration signifies a legal entity 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 as part of mandatory European business statistics reporting.