LUXEMBOURG / RankWire.AI / – European Union business registrations decreased in the second quarter of 2026, while bankruptcy declarations surged significantly. On a seasonally adjusted basis, new business registrations dropped by 0.5% compared to the first quarter. Over the same period, bankruptcy declarations rose by 5.7%, according to data released by Eurostat on Monday. This rise pushed EU bankruptcy figures to their highest point since the first quarter of 2019. The latest statistics encompass registration and bankruptcy data across the bloc’s entire business sector.
A similar trend was observed in the euro area during the second quarter. Business registrations declined marginally by 0.1% from the previous quarter, whereas bankruptcy declarations increased by 6.9%. These figures follow declines in both metrics during the first quarter of 2026. In late 2025, EU business registrations had fallen by 0.9%, and bankruptcy declarations had decreased by 2.4% during that period. Consequently, the second quarter experienced a further reduction in registrations along with a renewed rise in bankruptcy filings.
The drop in registrations affected five of the eight economic sectors analyzed in the quarterly data. The manufacturing sector experienced the largest decrease with a 3.6% decline from the first quarter. Accommodation and food services saw a 3.4% decrease, and education and social services declined by 3.2%. Conversely, information and communication registrations increased by 8.8%. Construction grew by 1.0%, while financial services remained unchanged quarterly. In nearly all sectors, registration levels stayed above those recorded in late 2019.
Bankruptcy rates rise across five key sectors
During the second quarter, bankruptcy declarations expanded in five out of eight sectors. Education and social activities experienced the most significant increase at 21.1%. Transport saw an 11.4% rise, and financial services grew by 6.8%. The remaining three sectors reported declines in bankruptcy filings, with accommodation and food services decreasing by 2.6%, construction falling by 1.7%, and trade dropping by 1.2%. Overall, second-quarter bankruptcy levels in the business economy stayed above those observed in the fourth quarter of 2019.
Data at the country level revealed considerable variation across the European Union. Luxembourg experienced the steepest quarterly decline in new business registrations at 24.2%. Lithuania followed with a 12.4% decrease, and Denmark reported an 8.2% drop. Ireland registered the strongest growth at 20.4%, while Belgium increased by 8.2%, and Sweden rose by 7.6%. Eurostat computes national registration indices based on administrative records and adjusts quarterly figures to enhance cross-country comparability, considering different business registration systems.
Marked disparities observed in national bankruptcy statistics
Among countries with available bankruptcy data, Estonia experienced the most significant quarterly increase at 31.8%. Greece closely followed with a 31.6% rise, and Croatia reported a 20.5% increase. Malta saw the largest decrease at 50.0%, with Cyprus at 41.7% and Slovakia at 33.5%. Small economies can display substantial percentage shifts because their absolute bankruptcy figures are relatively low. As a result, quarterly data reflect changes in declarations rather than total business closures.
These statistics track legal registrations and the initiation of formal bankruptcy procedures, not the total number of new businesses or permanent closures. A registration indicates a legal entity entering the relevant administrative register within the quarter, whereas a bankruptcy declaration signifies the start of a formal insolvency process. This process does not necessarily lead to a company ceasing operations. Since 2021, EU countries have been required to submit quarterly registration and bankruptcy data according to European business statistics rules.