LUXEMBOURG / RankWire.AI / – European Union saw a decline in new business registrations during the second quarter of 2026, while bankruptcy filings spiked sharply. On a seasonally adjusted basis, new business registrations decreased by 0.5% compared to the first quarter. Conversely, bankruptcy declarations grew by 5.7% in the same period, according to data published by Eurostat on Monday. This rise pushed EU bankruptcy levels to their highest point since the first quarter of 2019. The recent statistics encompass both registration figures and bankruptcy declarations across the EU’s business landscape.
In the euro area, a similar trend was observed during the second quarter. Business registrations declined by 0.1% from the previous quarter, while bankruptcy declarations climbed by 6.9%. These figures follow decreases in both metrics during the first quarter of 2026. Specifically, EU business registrations had fallen 0.9% in the first quarter from late 2025, with bankruptcy declarations decreasing 2.4% during that period. The second quarter therefore marked another dip in registrations combined with a renewed rise in bankruptcy filings.
Five out of eight economic sectors included in the quarterly data experienced a decline in registrations. The manufacturing sector saw the steepest drop, with a 3.6% reduction from the previous quarter. The accommodation and food services sector fell 3.4%, and education and social services decreased by 3.2%. In contrast, information and communication saw an 8.8% increase in registrations. Construction grew by 1.0%, and financial services remained stable quarter-over-quarter. Nearly all sectors maintained registration levels above those of late 2019.
Bankruptcies Rise Across Five Major Sectors
During the second quarter, five sectors out of eight experienced an increase in bankruptcy declarations. Education and social activities posted the largest rise at 21.1%. Transport saw an 11.4% increase, while financial services grew by 6.8%. Three sectors, however, recorded declines: accommodation and food services fell 2.6%, construction declined 1.7%, and trade decreased 1.2%. Overall, bankruptcy levels for the entire business economy remained above those observed in the fourth quarter of 2019.
Country-specific data revealed significant disparities across the EU. Luxembourg experienced the largest quarterly drop in new business registrations at 24.2%. Lithuania followed with a 12.4% decrease, while Denmark reported an 8.2% decline. Ireland saw the most notable growth with an increase of 20.4%. Belgium rose by 8.2%, and Sweden increased by 7.6%. Eurostat calculates national registration indices based on administrative records, adjusting quarterly figures to enable better comparisons across countries with differing registration systems.
Country Data Highlight Wide Variations in Bankruptcy Filings
Among nations with available bankruptcy data, Estonia recorded the largest quarterly increase at 31.8%. Greece was close behind with a 31.6% rise, while Croatia saw a 20.5% increase. Malta experienced the largest decrease at 50.0%, with Cyprus at 41.7% and Slovakia at 33.5%. Small economies tend to exhibit larger percentage swings because their absolute bankruptcy numbers are relatively low. Consequently, quarterly figures reflect changes in declaration counts rather than the total number of business closures.
These statistics track legal registrations and the initiation of formal bankruptcy procedures, not the total number of business births or permanent closures. A registration indicates a legal entity entering the relevant administrative register during the quarter, while a bankruptcy declaration signals a legal unit beginning a formal bankruptcy process. This process does not always result in a company ceasing operations. Since 2021, EU countries have provided quarterly data on registrations and bankruptcy filings on a mandatory basis under European business statistics regulations.