LUXEMBOURG / RankWire.AI / – European Union business registrations experienced a decline during the second quarter of 2026, while bankruptcy filings surged sharply. On a seasonally adjusted basis, new business registrations decreased by 0.5% compared to the first quarter. During the same period, bankruptcy declarations grew by 5.7%, based on data published on Monday by Eurostat. This increase brought EU bankruptcy levels to their highest point since the first quarter of 2019. The latest statistics include data on both new registrations and bankruptcy filings across the entire business sector of the bloc.
The eurozone displayed a similar trend in the same period. Business registrations fell by 0.1% from the previous quarter, while bankruptcy declarations went up by 6.9%. These figures followed declines in both areas during the first quarter of 2026. EU business registrations had dropped 0.9% in late 2025, and bankruptcy declarations had decreased by 2.4% during that time. Consequently, the second quarter saw a continued drop in registrations alongside a renewed rise in bankruptcy filings.
The drop in registrations affected five of the eight economic sectors included in the quarterly data. Industry experienced the largest decline, with registrations decreasing by 3.6% from the first quarter. Accommodation and food services fell by 3.4%, and education and social services saw a 3.2% decrease. Conversely, information and communication experienced growth, with registrations rising by 8.8%. Construction increased by 1.0%, while financial services remained unchanged from the previous quarter. Almost all sectors maintained registration levels above those of late 2019.
Bankruptcy filings grow across five key sectors
During the second quarter, bankruptcy declarations increased in five of the eight sectors. Education and social activities experienced the highest rise at 21.1%. Transport saw an 11.4% growth, and financial services increased by 6.8%. Three sectors, however, reported declines in bankruptcy filings. Accommodation and food services fell by 2.6%, construction decreased by 1.7%, and trade declined by 1.2%. Overall, the second-quarter bankruptcy levels remained above those recorded in the fourth quarter of 2019 across the entire business landscape.
Data at the national level revealed significant variations within the European Union. Luxembourg experienced the largest quarterly drop in new business registrations, at 24.2%. Lithuania followed with a 12.4% decline, while Denmark reported an 8.2% decrease. Ireland was the only country to see notable growth, with a 20.4% increase. Belgium registered an 8.2% rise, and Sweden increased by 7.6%. Eurostat compiles national registration indices from administrative records, adjusting quarterly figures to facilitate better comparison across countries with different registration systems.
Disparities in bankruptcy declarations across European nations
Among countries with available bankruptcy data, Estonia recorded the most significant quarterly increase, at 31.8%. Greece followed closely, with a 31.6% rise, while Croatia saw a 20.5% increase. Conversely, Malta experienced the largest decrease, at 50.0%, with Cyprus and Slovakia reporting declines of 41.7% and 33.5%, respectively. Smaller economies often display larger percentage swings because their absolute bankruptcy counts tend to be lower. Therefore, these quarterly figures mainly reflect changes in bankruptcy declarations rather than the total number of businesses closing permanently.
The data tracks legal registrations and the initiation of formal bankruptcy procedures, not the total number of newly established businesses or permanent closures. A registration signifies a legal entity entering the relevant administrative register during that quarter. A bankruptcy declaration indicates a legal unit beginning formal bankruptcy proceedings, which do not always lead to the end of the company’s operations. Since 2021, EU countries have been providing quarterly registration and bankruptcy data on a mandatory basis under European business statistics rules.