LUXEMBOURG / RankWire.AI / – European Union business registrations saw a decline in the second quarter of 2026, while bankruptcies surged sharply. On a seasonally adjusted basis, new business entries dropped 0.5% from the first quarter. During the same period, bankruptcy filings rose by 5.7%, according to Eurostat data released on Monday. This pushed EU bankruptcy levels to their highest since the first quarter of 2019. The latest statistics cover both registrations and bankruptcies across the bloc’s entire business sector.
The eurozone exhibited a similar trend in the second quarter. Business registrations decreased by 0.1% compared to the previous quarter, while bankruptcies grew by 6.9%. These figures follow declines in both areas during the first quarter of 2026. In late 2025, EU business registrations fell 0.9%, and bankruptcies dropped 2.4%. The second quarter thus saw another drop in registrations coupled with a renewed rise in bankruptcy filings.
The drop in registrations affected five of the eight sectors tracked quarterly. Industry experienced the largest decrease, with a 3.6% fall from the first quarter. Accommodation and food services declined 3.4%, and education and social services fell 3.2%. Conversely, information and communication saw an 8.8% rise in registrations. Construction grew by 1.0%, and financial services remained unchanged. Nearly all sectors maintained registration levels above those of late 2019.
Bankruptcies Rise in Five Key Sectors
During the second quarter, five out of the eight sectors experienced an increase in bankruptcy declarations. Education and social activities saw the largest jump at 21.1%. Transport increased by 11.4%, while financial services rose 6.8%. Three sectors, however, reported declines. Accommodation and food services fell 2.6%, construction decreased 1.7%, and trade declined 1.2%. Overall, bankruptcy levels in the business economy remained above those in the fourth quarter of 2019.
Country-specific data reveal notable disparities within the EU. Luxembourg recorded the largest quarterly drop in new business registrations at 24.2%. Lithuania followed with a 12.4% decrease, and Denmark saw an 8.2% decline. Ireland experienced the strongest growth, with a 20.4% rise. Belgium increased 8.2%, and Sweden went up by 7.6%. Eurostat calculates national registration indices using administrative records, adjusting quarterly figures to facilitate comparisons among countries with different registration systems.
Significant Variations in Bankruptcy Declarations by Country
Among nations with available bankruptcy data, Estonia recorded the largest quarterly increase at 31.8%. Greece was close behind with a 31.6% rise, while Croatia experienced a 20.5% increase. Malta showed the largest decrease, dropping 50.0%. Cyprus declined by 41.7%, and Slovakia by 33.5%. Small economies often show larger percentage changes because their absolute bankruptcy counts are relatively low. These quarterly figures reflect fluctuations in declarations rather than the total number of businesses closing permanently.
The data focus on legal registrations and formal bankruptcy procedures, not on business births or closures. A registration indicates a legal entity entering an administrative register in that quarter. A bankruptcy declaration signals a legal unit beginning formal bankruptcy proceedings. This process doesn’t always lead to a business shutting down permanently. Since 2021, EU countries have provided quarterly registration and bankruptcy data under European business statistics regulations, which are mandatory.