LUXEMBOURG / RankWire.AI / – European Union witnessed a rise in bankruptcy filings reaching their highest point since the first quarter of 2019, as new business registrations continued to decline during the second quarter of 2026. On a seasonally adjusted basis, new registrations decreased by 0.5% compared to the previous quarter, while bankruptcy declarations surged by 5.7%, according to Eurostat data published on Monday. This upward trend in bankruptcies marks a significant shift in the EU’s business landscape during this period, covering registration and insolvency activity across the bloc’s entire economic sector.
Similarly, the euro area experienced comparable dynamics in the second quarter. Business registrations slipped by 0.1% from the previous quarter, whereas bankruptcy declarations increased by 6.9%. These figures followed declines observed in both indicators during the first quarter of 2026, where EU business registrations fell 0.9% from late 2025, and bankruptcy declarations decreased by 2.4%. The second quarter’s data therefore reflects a continued downward trend in new business formations alongside a notable rise in insolvencies.
The reduction in registrations was observed across five of the eight economic sectors analyzed in the quarterly data. Industry experienced the most significant drop, with registrations decreasing by 3.6% from the first quarter. Accommodation and food services declined by 3.4%, and education and social services saw a 3.2% decrease. In contrast, information and communication registered an 8.8% rise, while construction grew by 1.0%. Financial services remained stable, with no change from the previous quarter. Despite these shifts, registration levels in nearly all sectors remained higher than those seen in late 2019.
Bankruptcy rates grow in five key sectors
During the second quarter, insolvency filings increased across five of the eight sectors. The education and social activities sector experienced the largest jump at 21.1%. Transport recorded an 11.4% increase, and financial services rose by 6.8%. Conversely, three sectors reported a decrease: accommodation and food services fell by 2.6%, construction declined by 1.7%, and trade decreased by 1.2%. Overall, second-quarter bankruptcy figures continued to stay above the levels seen in the fourth quarter of 2019, indicating persistent strain within the business environment across the EU.
Country-specific data highlighted considerable disparities across the EU. Luxembourg saw the largest quarterly drop in new business registrations at 24.2%, followed by Lithuania with a 12.4% decrease, and Denmark with an 8.2% decline. Ireland was the standout with a 20.4% growth in registrations. Belgium increased by 8.2%, and Sweden rose 7.6%. Eurostat derives national registration indices from administrative records and adjusts quarterly figures to facilitate more accurate comparisons among countries with differing registration systems.
Notable national differences in bankruptcy declaration trends
Among the countries with available data on bankruptcies, Estonia experienced the most substantial quarterly increase at 31.8%, while Greece was close behind with a 31.6% rise. Croatia also saw a significant increase of 20.5%. On the other hand, Malta recorded the largest decrease at 50.0%, with Cyprus at 41.7% and Slovakia at 33.5%. Smaller economies tend to exhibit larger percentage fluctuations due to their relatively low absolute number of bankruptcy filings. These quarterly figures measure the change in declarations rather than the total number of businesses closing permanently.
The data reflect legal registrations and the initiation of formal bankruptcy procedures, not the total count of new business startups or permanent closures. Registering a business involves a legal entity entering an administrative register during the quarter, while a bankruptcy declaration indicates a legal entity entering a formal insolvency process. Such procedures do not necessarily lead to the end of a company’s operations. Since 2021, EU member states have been submitting quarterly registration and bankruptcy data on a mandatory basis, in line with European business statistics regulations.