LUXEMBOURG / RankWire.AI / – European Union business registrations decreased in the second quarter of 2026, while the number of bankruptcy filings sharply rose, according to recent data. On a seasonally adjusted basis, new business entries declined by 0.5% compared to the first quarter, whereas bankruptcy declarations saw a significant increase of 5.7%, as reported by Eurostat on Monday. This uptick pushed EU bankruptcy figures to their highest point since the first quarter of 2019. The latest statistics encompass data on both new company registrations and bankruptcy filings across the entire business sector of the bloc.
Similar trends emerged within the euro area, where during the same period, business registrations experienced a marginal decrease of 0.1% from the previous quarter, while bankruptcy declarations grew by 6.9%. These figures follow declines observed in both indicators during the first quarter of 2026, with EU registrations falling 0.9% from late 2025 and bankruptcy filings decreasing by 2.4% during that period. Consequently, the second quarter saw a renewed drop in registrations coupled with a further rise in bankruptcy proceedings.
The decrease in registrations was evident across five out of the eight economic sectors analyzed in the quarterly data. The manufacturing sector experienced the largest decline, with registrations dropping 3.6% from the previous quarter. Accommodation and food services saw a 3.4% fall, while education and social services decreased by 3.2%. In contrast, information and communication activities bucked the trend with an 8.8% increase in registrations. The construction sector grew by 1.0%, and financial services maintained stability, showing no change from the prior quarter. Despite these shifts, levels remained above those recorded in late 2019 in nearly all sectors.
Bankruptcies Rise in Five Key Sectors
During the second quarter, declarations of bankruptcy increased in five of the eight sectors monitored. The education and social activities sector experienced the most significant rise, climbing 21.1%. Transport saw an 11.4% increase, with financial services growing by 6.8%. Conversely, three sectors reported declines in bankruptcy filings: accommodation and food services fell 2.6%, construction declined 1.7%, and trade decreased by 1.2%. Overall, the second quarter’s bankruptcy levels across the entire business economy remained above those recorded in the fourth quarter of 2019.
Data at the country level revealed notable disparities across the European Union. Luxembourg experienced the most substantial quarterly drop in new business registrations, decreasing by 24.2%. Lithuania followed with a 12.4% decline, while Denmark recorded an 8.2% decrease. Conversely, Ireland exhibited the strongest growth, with an increase of 20.4%. Belgium and Sweden also showed positive trends, with increases of 8.2% and 7.6%, respectively. Eurostat compiles national registration indices from administrative records and makes adjustments to quarterly figures to facilitate comparison among countries with different business registration systems.
Country-Level Data Reveal Wide Variations in Bankruptcy Filings
Among nations with available bankruptcy data, Estonia reported the largest quarterly increase at 31.8%, followed closely by Greece with a 31.6% rise. Croatia also saw a substantial increase of 20.5%. On the other hand, Malta experienced the most significant decrease, with a 50.0% reduction, while Cyprus and Slovakia recorded declines of 41.7% and 33.5%, respectively. It is important to note that smaller economies can display large percentage changes due to their relatively low absolute numbers of bankruptcy declarations. Therefore, these quarterly figures primarily reflect fluctuations in the number of filings rather than the total number of businesses ceasing operations.
The data encompass legal registrations and the initiation of formal bankruptcy procedures but do not necessarily indicate final business closures or permanent shutdowns. A registration signifies a legal entity being entered into the relevant administrative register during the quarter, whereas a bankruptcy declaration marks the start of a formal insolvency process, which does not always lead to the company’s dissolution. Since 2021, EU countries have been mandated to report quarterly registration and bankruptcy data under European business statistics regulations, ensuring consistent tracking across member states.