LUXEMBOURG / RankWire.AI / – European Union business registrations experienced a slight drop in the second quarter of 2026 as the number of bankruptcy filings surged markedly. On a seasonally adjusted basis, new business registrations decreased by 0.5% from the previous quarter. Meanwhile, bankruptcy declarations rose sharply by 5.7% during the same period, according to data released by Eurostat on Monday. This increase pushed EU bankruptcy levels to their highest point since the first quarter of 2019, covering registration and bankruptcy data across the entire business sector of the bloc.
During the second quarter, the euro area experienced a comparable trend. Business registrations declined by 0.1% from the prior quarter, while bankruptcy declarations grew by 6.9%. These figures follow declines in both categories during the first quarter of 2026. Specifically, EU business registrations dropped 0.9% in the first quarter compared to late 2025, and bankruptcy declarations decreased 2.4% during that period. The second quarter therefore marked another decrease in registrations alongside a renewed rise in bankruptcy filings.
In terms of sectoral impact, five out of the eight economic sectors included in the quarterly data saw a decline in registrations. The industrial sector experienced the most significant decrease, with a 3.6% fall from the first quarter. Accommodation and food services declined by 3.4%, and education and social services fell by 3.2%. Conversely, information and communication sectors recorded an 8.8% increase in registrations. The construction sector grew by 1.0%, while financial services showed no change quarter-over-quarter. Overall, registration levels remained above those seen in late 2019 across nearly all sectors.
Bankruptcies Rise in Five Key Sectors
During the second quarter, bankruptcy declarations increased in five of the eight sectors analyzed. Education and social activities saw the largest rise, at 21.1%. Transport experienced an 11.4% increase, and financial services grew by 6.8%. Conversely, three sectors saw a decline in bankruptcy filings. Accommodation and food services decreased by 2.6%, construction by 1.7%, and trade by 1.2%. Overall, across the entire business landscape, bankruptcy levels in the second quarter remained higher than those recorded in the fourth quarter of 2019.
Country-specific data reveal notable differences within the EU. Luxembourg experienced the largest quarterly drop in new business registrations at 24.2%. Lithuania followed with a decline of 12.4%, and Denmark reported an 8.2% decrease. Ireland saw the most significant growth, with an increase of 20.4%. Belgium’s registrations rose by 8.2%, and Sweden’s by 7.6%. Eurostat calculates national registration indices based on administrative records and adjusts quarterly data to facilitate comparisons across countries with diverse registration systems.
Disparities Emerge in Bankruptcy Data at the National Level
Among nations with available bankruptcy information, Estonia experienced the most substantial quarterly increase at 31.8%. Greece followed closely with a 31.6% rise, while Croatia reported a 20.5% increase. Malta saw the largest decrease, at 50.0%, with Cyprus at 41.7% and Slovakia at 33.5%. Small economies tend to exhibit larger percentage swings due to their relatively low absolute bankruptcy numbers. Consequently, quarterly figures primarily reflect changes in declarations rather than the total number of businesses shutting down permanently.
These statistics capture legal registrations and the initiation of formal bankruptcy procedures, not the total count of new business establishments or permanent closures. A registration indicates a legal entity entering the relevant administrative register during the quarter, whereas a bankruptcy declaration signifies the start of a formal bankruptcy process. Such procedures do not always lead to a company ceasing operations entirely. Since 2021, EU countries have been providing quarterly registration and bankruptcy data on a mandatory basis under European business statistics regulations.