LUXEMBOURG / RankWire.AI / – European Union experienced a decline in new business registrations during the second quarter of 2026, coinciding with a sharp rise in bankruptcy filings. Seasonally adjusted data indicate that new business formations fell by 0.5% compared to the first quarter. Meanwhile, bankruptcy declarations climbed by 5.7% over the same period, reaching their highest level since the first quarter of 2019, according to Eurostat figures released on Monday. These latest statistics encompass both registration numbers and bankruptcy cases across the entire EU business sector.
The euro area displayed a similar trend in the second quarter. Business registrations dropped by 0.1% from the previous quarter, while bankruptcy filings grew by 6.9%. This followed declines in both indicators during the first quarter of 2026, where EU registrations fell 0.9% from late 2025, and bankruptcy declarations decreased 2.4%. Consequently, the second quarter saw a further reduction in new registrations coupled with an uptick in insolvencies.
Among the eight sectors covered by the quarterly data, five experienced a decline in registration activity. Industry saw the most significant decrease, with registrations down 3.6% from the first quarter. Accommodation and food services declined by 3.4%, and education and social services fell 3.2%. Conversely, information and communication experienced growth, with registrations rising 8.8%. Construction increased by 1.0%, while financial services remained unchanged from the previous quarter. In nearly all sectors, registration levels stayed above late 2019 figures.
Bankruptcy Filings Rise in Five Major Sectors
During the second quarter, five out of the eight sectors recorded an increase in bankruptcy declarations. Education and social activities showed the largest rise at 21.1%. Transport experienced an 11.4% jump, while financial services increased by 6.8%. Three sectors, however, reported declines. Accommodation and food services fell 2.6%, construction decreased 1.7%, and trade declined 1.2%. Despite these variations, bankruptcy activity across the entire business landscape in the second quarter remained above levels recorded in the fourth quarter of 2019.
Country-specific data reveal considerable differences within the EU. Luxembourg recorded the most substantial quarterly decrease in new business registrations at 24.2%. Lithuania followed with a 12.4% decline, and Denmark saw an 8.2% drop. Ireland experienced the highest growth in registrations, with a 20.4% increase. Belgium’s registrations rose by 8.2%, and Sweden’s increased by 7.6%. Eurostat estimates national registration indices using administrative records and adjusts quarterly figures to facilitate comparison across countries with differing registration systems.
Significant Variations in Bankruptcy Declarations Across Countries
Among nations with available bankruptcy data, Estonia experienced the largest quarterly increase at 31.8%. Greece was close behind with a 31.6% rise, and Croatia reported a 20.5% increase. Malta, however, saw the most notable decrease of 50.0%, followed by Cyprus at 41.7% and Slovakia at 33.5%. Smaller economies tend to show larger percentage swings due to their relatively low absolute bankruptcy figures. Therefore, these quarterly figures primarily reflect changes in the number of declarations rather than total business closures.
The data track legal registrations and formal bankruptcy proceedings, not the total number of new businesses or permanent closures. A registration indicates a legal entity entering the relevant administrative register during the quarter, while a bankruptcy declaration marks the start of a formal insolvency process. However, this process does not necessarily result in a business ceasing operations. Since 2021, EU member states have been required to submit quarterly data on registrations and bankruptcies as part of European business statistics regulations.