LUXEMBOURG / RankWire.AI / – European Union business registrations experienced a slight decline in the second quarter of 2026, while the number of bankruptcy filings surged sharply. Seasonally adjusted data show that new business registrations decreased by 0.5% compared to the first quarter. Meanwhile, bankruptcy declarations rose by 5.7% during the same period, according to Eurostat data published on Monday. This increase pushed EU bankruptcy figures to their highest level since the first quarter of 2019. The latest statistics encompass registration and bankruptcy data across the entire business sector of the bloc.
A comparable trend was visible within the eurozone during the same timeframe. Business registrations declined by 0.1% from the previous quarter, while bankruptcy filings increased by 6.9%. These figures follow declines in both metrics during the first quarter of 2026, when EU registration figures fell by 0.9% from late 2025 and bankruptcy declarations decreased by 2.4%. The second quarter thus saw a continued drop in registrations combined with an uptick in bankruptcy filings.
The decrease in registrations was observed in five of the eight economic sectors included in the quarterly data. The manufacturing industry experienced the largest decline, with a 3.6% drop from the previous quarter. Accommodation and food service sectors decreased by 3.4%, and education and social services fell by 3.2%. Conversely, information and communication sectors reported an 8.8% increase in registrations. Construction activity grew by 1.0%, and there was no change in financial services. In nearly all sectors, registration levels remained above those seen in late 2019.
Bankruptcy declarations rise in five key sectors
During the second quarter, five of the eight sectors saw an increase in bankruptcy filings. Education and social activities recorded the largest rise, at 21.1%. Transport sector filings increased by 11.4%, and financial services saw a 6.8% rise. Three sectors experienced a decline in bankruptcy declarations: accommodation and food services fell by 2.6%, construction by 1.7%, and trade by 1.2%. Overall, bankruptcy levels across the entire business economy in the second quarter remained higher than those recorded in the fourth quarter of 2019.
Country-specific data reveal significant variation across the EU. Luxembourg saw the largest quarterly decrease in new business registrations at 24.2%. Lithuania’s registrations dropped by 12.4%, while Denmark experienced an 8.2% decline. Ireland, on the other hand, had the most substantial growth, with registrations increasing by 20.4%. Belgium and Sweden also registered increases of 8.2% and 7.6%, respectively. Eurostat constructs national registration indices based on administrative records, adjusting quarterly figures to facilitate better comparisons between countries with differing registration systems.
Significant national differences in bankruptcy trends emerge
Among nations with available bankruptcy data, Estonia experienced the largest quarterly increase at 31.8%. Greece followed with a 31.6% rise, and Croatia reported a 20.5% growth. Conversely, Malta saw the most notable decrease at 50.0%, with Cyprus down 41.7%, and Slovakia decreasing by 33.5%. Smaller economies tend to exhibit larger percentage fluctuations because their absolute bankruptcy numbers are relatively low. Consequently, these quarterly figures primarily reflect changes in declaration rates rather than total business closures.
The data encompass legal registrations and the initiation of formal bankruptcy proceedings but do not necessarily indicate completed business closures or permanent shutdowns. Registration signifies a legal entity entering the relevant administrative register during the quarter, while a bankruptcy declaration indicates a formal bankruptcy process has begun. Such processes do not always lead to a company’s cessation of operations. Since 2021, EU countries have been providing quarterly data on registrations and bankruptcies as mandated by European business statistics regulations.