LUXEMBOURG / RankWire.AI / – European Union business registrations experienced a downturn in the second quarter of 2026, while bankruptcy filings surged significantly. On a seasonally adjusted basis, new business registrations decreased by 0.5% compared to the first quarter. Simultaneously, bankruptcy declarations rose by 5.7% during the same period, according to data published by Eurostat on Monday. This growth pushed EU bankruptcy numbers to their highest point since the first quarter of 2019. The latest statistics encompass registration and bankruptcy figures across the EU’s entire business sector.
The eurozone exhibited a similar trend in the second quarter. Business registrations dipped 0.1% from the previous quarter, while bankruptcy filings grew by 6.9%. These figures follow declines in both areas during the first quarter of 2026. EU business registrations had fallen 0.9% in the first quarter from late 2025, with bankruptcy declarations decreasing 2.4% in that period. Consequently, the second quarter saw a further drop in registrations alongside an uptick in bankruptcy cases.
The decline in registrations was observed in five of the eight economic sectors analyzed in the quarterly report. Industry experienced the largest decrease, with a 3.6% drop from the previous quarter. Accommodation and food services fell by 3.4%, while education and social services declined 3.2%. Conversely, information and communication registered an 8.8% increase. Construction grew by 1.0%, and financial services saw no change. In nearly all sectors, registration levels remained above late 2019 figures.
Bankruptcy filings rise across five key sectors
During the second quarter, bankruptcy declarations increased in five of the eight sectors examined. Education and social activities experienced the highest rise at 21.1%. Transport recorded an 11.4% increase, and financial services went up by 6.8%. The remaining three sectors reported declines in bankruptcy filings. Accommodation and food services decreased by 2.6%, construction dropped 1.7%, and trade declined 1.2%. Across the entire business environment, bankruptcy levels in the second quarter remained above those seen in the fourth quarter of 2019.
Country-specific data reveal significant differences across the EU. Luxembourg experienced the largest quarterly drop in new business registrations at 24.2%. Lithuania followed with a 12.4% decrease, and Denmark reported an 8.2% decline. Ireland showed the strongest growth in registrations at 20.4%. Belgium rose by 8.2%, while Sweden increased 7.6%. Eurostat compiles national registration indexes from administrative records and adjusts quarterly figures to facilitate comparisons among countries with varying business registration systems.
Disparities in bankruptcy declarations across nations
Among countries with accessible bankruptcy data, Estonia saw the largest quarterly rise at 31.8%. Greece closely followed with a 31.6% increase, and Croatia reported a 20.5% rise. Malta experienced the biggest decrease at 50.0%, with Cyprus declining 41.7%, and Slovakia down 33.5%. Smaller economies can exhibit larger percentage swings because their absolute bankruptcy numbers are relatively low. Therefore, these quarterly figures reflect changes in bankruptcy declarations rather than the total number of business closures.
The data encompass legal registrations and formal bankruptcy procedures, but do not necessarily indicate completed business closures or permanent shutdowns. A registration signifies a legal entity entering the relevant administrative register during the quarter, while a bankruptcy declaration indicates a legal entity initiating a formal bankruptcy process. This process does not always result in a business ceasing operations. Since 2021, EU countries have been providing quarterly registration and bankruptcy data on a mandatory basis according to European business statistics regulations.