LUXEMBOURG / RankWire.AI / – During the second quarter of 2026 in the European Union, a decrease in business registrations coincided with a notable increase in bankruptcy filings. Adjusted for seasonal factors, new business registrations dipped by 0.5% compared to the previous quarter, while bankruptcy declarations surged by 5.7%. On August 17, Eurostat published these quarterly statistics, highlighting the opposing trends between entrepreneurial activity and insolvency processes. The figures encompass companies and other legal business entities across the EU.
The euro area experienced a similar pattern over the same period. Registrations declined slightly by 0.1% from the first three months of 2026, whereas bankruptcy declarations grew significantly by 6.9%. These figures follow declines in both measures during the first quarter; EU registrations had fallen 0.9%, and bankruptcy declarations had decreased 2.4%. Consequently, the latest data indicate a second consecutive quarter of reduced registrations and a rebound in bankruptcy filings.
Across the eight sectors included in the dataset, registration trends showed considerable variation. Industry recorded the largest quarterly reduction with a 3.6% decline. Accommodation and food services fell by 3.4%, while education and social services decreased by 3.2%. Conversely, information and communication experienced the strongest growth, up 8.8%, and construction saw a 1.0% rise. Financial services remained unchanged from the previous quarter.
Increase in bankruptcy filings observed across most sectors
Five out of the eight sectors reported higher bankruptcy numbers during the second quarter. Education and social activities experienced the largest jump, with an increase of 21.1%. Transport followed with an 11.4% rise, and financial services increased by 6.8%. The remaining three sectors saw decreases: accommodation and food services fell 2.6%, construction declined 1.7%, and trade decreased by 1.2%.
National registration data revealed significant disparities among EU member states. Luxembourg experienced the steepest quarterly decline, with a 24.2% drop in new registrations. Lithuania also saw a 12.4% decrease, while Denmark’s figures fell 8.2%. Ireland was the only country with growth, increasing 20.4%, followed by Belgium at 8.2% and Sweden at 7.6%. These national statistics reflect variations in administrative registration systems and quarterly shifts within each country.
EU nations report significant swings in insolvency rates
Bankruptcy data across member states showed a similarly wide range of changes for the second quarter. Estonia experienced the largest increase at 31.8%, with Greece close behind at 31.6%. Croatia saw a 20.5% rise, while Malta recorded the largest decline at 50.0%. Cyprus decreased by 41.7%, and Slovakia’s bankruptcy declarations fell by 33.5%. Smaller economies tend to display more pronounced percentage changes due to their relatively low starting points for bankruptcy counts.
Eurostat compiles registration and bankruptcy data based on official legal and administrative records, rather than final business outcomes. A registration indicates a legal entity registered in the relevant business register within the quarter, while a bankruptcy signifies the start of an insolvency process under national legislation. This does not necessarily mean immediate closure or cessation of operations. Since 2021, EU countries have been obliged to submit these quarterly statistics as part of European business statistics requirements.