LUXEMBOURG / RankWire.AI / – European Union saw a notable rise in bankruptcy filings during the second quarter of 2026, coinciding with a slight decline in new business registrations. Seasonally adjusted data shows that new business entries decreased by 0.5% compared to the first quarter. Meanwhile, the number of bankruptcy declarations jumped by 5.7% over the same period, reaching their highest point since the first quarter of 2019, according to Eurostat’s published figures on Monday. These latest statistics encompass registration and bankruptcy figures across the EU’s entire business sector.
The euro area exhibited a similar pattern during the same period. Business registrations fell marginally by 0.1% from the previous quarter, while bankruptcy declarations surged by 6.9%. These figures follow declines observed in both indicators during the first quarter of 2026, with EU registrations dropping 0.9% from late 2025 and bankruptcies decreasing 2.4%. The second quarter, therefore, brought about another dip in registrations alongside a renewed rise in bankruptcy filings across the region.
This decline in registrations impacted five of the eight economic sectors analyzed in the quarterly data. The industry sector experienced the sharpest decrease, with a 3.6% drop from the first quarter. Accommodation and food services fell by 3.4%, while education and social services declined by 3.2%. Conversely, information and communication sectors saw an increase of 8.8% in registrations. Construction grew by 1.0%, with financial services remaining unchanged on a quarterly basis. Nearly all sectors maintained registration levels above those recorded in late 2019.
Bankruptcies Rise in Five Major Sectors
Across the eight sectors monitored, five experienced a rise in bankruptcy declarations during the second quarter. The education and social activities sector reported the most significant increase at 21.1%. Transport followed with an 11.4% increase, and financial services grew by 6.8%. Conversely, three sectors saw declines: accommodation and food services fell 2.6%, construction declined 1.7%, and trade decreased by 1.2%. Overall, bankruptcy levels for the entire business economy in the second quarter remained above those observed in the fourth quarter of 2019.
Data at the country level revealed significant variations across the EU. Luxembourg experienced the largest quarterly decrease in new business registrations at 24.2%, with Lithuania following at 12.4%. Denmark saw an 8.2% drop, while Ireland recorded the highest growth at 20.4%. Belgium increased registrations by 8.2%, and Sweden rose by 7.6%. Eurostat derives national registration indices from administrative records and adjusts quarterly figures to enhance comparability among countries with different business registration systems.
Disparities in Bankruptcy Declarations Across Countries
For nations with available bankruptcy data, Estonia experienced the most substantial quarterly increase at 31.8%. Greece closely followed with a rise of 31.6%, and Croatia saw an increase of 20.5%. On the other hand, Malta had the largest decrease at 50.0%, with Cyprus declining by 41.7% and Slovakia by 33.5%. The relatively small size of some economies can lead to large percentage swings due to low absolute bankruptcy figures. These quarterly data reflect changes in bankruptcy declarations rather than the total number of business closures.
The statistics account for legal registrations and the initiation of formal bankruptcy procedures, not the total number of new business formations or permanent closures. A registration signifies a legal entity entering an administrative register in a given quarter, while a bankruptcy declaration indicates a legal entity starting formal insolvency proceedings. Such proceedings do not always result in the cessation of operations. Since 2021, EU countries have been mandated to provide quarterly data on registrations and bankruptcies under European business statistics rules.