LUXEMBOURG / RankWire.AI / – European Union business registrations declined in the second quarter of 2026 as bankruptcy filings surged notably. On a seasonally adjusted basis, new business registrations decreased by 0.5% from the first quarter, while bankruptcy declarations climbed 5.7% over the same period, according to data released on Monday by Eurostat. This increase pushed EU bankruptcy declarations to their highest point since the first quarter of 2019, covering registration and bankruptcy figures across the bloc’s entire business sector.
A comparable pattern emerged in the euro area during the same period, with business registrations slipping 0.1% from the previous quarter and bankruptcy filings rising 6.9%. These figures follow declines seen in both metrics during the first quarter of 2026, when EU business registrations fell 0.9% from late 2025 and bankruptcy declarations dropped 2.4%. Consequently, the second quarter experienced another decrease in registrations along with a renewed increase in bankruptcy filings.
Five of the eight sectors covered by the quarterly data experienced a decline in registrations. Industry saw the sharpest drop, with a 3.6% decrease from the first quarter. Accommodation and food services declined 3.4%, and education and social services fell 3.2%. Conversely, information and communication registered an 8.8% rise in registrations. Construction grew by 1.0%, and financial services showed no quarterly variation. In nearly all sectors, registration levels remained above those seen in late 2019.
Bankruptcy filings rise across five key sectors
During the second quarter, five of the eight sectors experienced an increase in bankruptcy declarations. Education and social activities saw the largest growth at 21.1%. Transport recorded an 11.4% rise, while financial services increased by 6.8%. Conversely, three sectors reported declines: accommodation and food services fell 2.6%, construction declined 1.7%, and trade decreased 1.2%. Across the entire business economy, bankruptcy levels in the second quarter remained above those recorded in the fourth quarter of 2019.
Country-specific data revealed significant variation across the EU. Luxembourg experienced 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 stood out with the strongest growth at 20.4%. Belgium increased 8.2%, and Sweden rose 7.6%. Eurostat computes national registration indices based on administrative records and adjusts quarterly figures to facilitate cross-country comparisons, given differing registration systems.
Disparities emerge in country-level bankruptcy data
Among countries with available bankruptcy figures, Estonia saw the largest quarterly increase at 31.8%. Greece was close behind, with a 31.6% rise, and Croatia reported a 20.5% growth. Malta experienced the most significant decrease at 50.0%, followed by Cyprus at 41.7% and Slovakia at 33.5%. Due to their relatively small economies, these countries can show large percentage swings, as their absolute bankruptcy counts are low. Therefore, quarterly figures tend to reflect changes in declarations rather than the total number of business closures.
These statistics track legal registrations and the initiation of formal bankruptcy procedures, not completed business launches or permanent shutdowns. A registration indicates a legal entity entering the relevant administrative register during the quarter, while a bankruptcy declaration signifies a legal unit entering formal bankruptcy proceedings. Such proceedings do not always result in a company’s cessation of operations. Since 2021, EU countries have supplied quarterly registration and bankruptcy data on a mandatory basis under European business statistics regulations.