LUXEMBOURG / RankWire.AI / – European Union experienced a decline in new business registrations during the second quarter of 2026, while bankruptcy filings surged significantly. The number of new enterprises registered dropped by 0.5% compared to the first quarter, based on seasonally adjusted figures. Simultaneously, bankruptcy declarations increased by 5.7% over the same period, according to Eurostat data published on Monday. This upward trend pushed EU bankruptcy filings to their highest level since the first quarter of 2019. The latest data encompasses registration and bankruptcy activity across the entire business sector of the bloc.
A similar trend was observed within the euro area during the same period. Business registrations decreased by 0.1% from the previous quarter, whereas bankruptcy declarations rose by 6.9%. These figures followed declines in both categories during the first quarter of 2026. In the first quarter of 2026, EU business registrations had fallen 0.9% from late 2025, with bankruptcy declarations down 2.4% during that period. Consequently, the second quarter saw a further decrease in registrations alongside a renewed rise in bankruptcy filings.
The drop in registrations affected five of the eight economic sectors covered by the quarterly data. Industry experienced the steepest decline, with registrations decreasing by 3.6% from the first quarter. Accommodation and food services fell 3.4%, while education and social services declined 3.2%. Conversely, information and communication registered an increase of 8.8%. Construction activity grew by 1.0%, and financial services remained stable quarter-over-quarter. In nearly all sectors, registration levels remained above the late 2019 levels.
Bankruptcies Rise Across Five Key Sectors
During the second quarter, bankruptcy declarations increased in five out of the eight sectors analyzed. Education and social activities experienced the most significant rise at 21.1%. Transport saw an 11.4% increase, with financial services rising 6.8%. The remaining three sectors reported decreases: accommodation and food services declined 2.6%, construction dropped 1.7%, and trade fell 1.2%. Overall, bankruptcy levels in the EU business economy during the second quarter were still above those recorded in the fourth quarter of 2019.
Country-specific data reveal notable disparities across the EU. Luxembourg experienced the largest quarterly decrease in new business registrations at 24.2%. Lithuania’s decline was 12.4%, and Denmark’s dropped 8.2%. Ireland stood out with a 20.4% increase in new registrations. Belgium’s figures rose 8.2%, while Sweden’s increased by 7.6%. Eurostat computes national registration indices from official records and adjusts quarterly data to enhance cross-country comparability, considering different business registration systems.
Disparities in Bankruptcy Declarations Among Countries
Among nations with available bankruptcy figures, Estonia recorded the highest quarterly increase at 31.8%. Greece followed closely with a 31.6% rise, and Croatia saw a 20.5% increase. Malta experienced the most significant decline, with a 50.0% decrease, while Cyprus and Slovakia recorded drops of 41.7% and 33.5%, respectively. Smaller economies often show larger percentage changes due to their relatively low absolute bankruptcy numbers. Therefore, these quarterly figures primarily reflect variations in declaration counts rather than the total number of business closures.
The data cover legal registrations and the initiation of formal bankruptcy procedures, not the total count of new business formations or permanent shutdowns. A registration indicates a legal entity entering an administrative register within the quarter, whereas a bankruptcy declaration signifies a legal entity beginning formal bankruptcy proceedings. However, such procedures do not necessarily result in the complete cessation of operations. Since 2021, EU countries have been mandated to report quarterly registration and bankruptcy data under European business statistics regulations.