LUXEMBOURG / RankWire.AI / – In the second quarter of 2026, European Union business registrations decreased, while the number of bankruptcy filings surged significantly. Adjusted for seasonal effects, new registrations dropped by 0.5% compared to the previous quarter. Conversely, bankruptcy declarations saw an increase of 5.7% over the same period. Eurostat published these quarterly figures on August 17, highlighting the contrasting trends between new business formations and insolvency proceedings. The data encompass companies and other legal entities operating within the EU economy.
During this period, the eurozone exhibited a pattern similar to the overall EU trend. Registrations there declined slightly by 0.1% from the first quarter of 2026, while bankruptcy filings rose markedly by 6.9%. These figures follow a decline in both measures during the first quarter, when EU registrations decreased by 0.9% and bankruptcies fell by 2.4%. The recent data thus show a second consecutive quarter of declining registrations and a resurgence in bankruptcy cases.
Significant variations emerged across the eight sectors included in the dataset. The manufacturing industry experienced the steepest quarterly decline, with registrations falling by 3.6%. The accommodation and food services sector decreased by 3.4%, and education and social services declined by 3.2%. The information and communication sector, however, saw the strongest growth, increasing by 8.8%. The construction sector grew modestly by 1.0%. Financial services remained unchanged from the previous quarter.
Most sectors see an uptick in bankruptcy filings
During the second quarter, five out of eight sectors recorded higher bankruptcy declarations. Education and social activities experienced the largest rise at 21.1%. Transport followed with an 11.4% increase, while financial services grew by 6.8%. Conversely, three sectors showed declines in bankruptcy filings: accommodation and food services fell 2.6%, construction dropped 1.7%, and trade decreased by 1.2%.
National registration data also revealed notable disparities among EU member states. Luxembourg experienced the steepest quarterly drop with new registrations declining by 24.2%. Lithuania saw a 12.4% decrease, and Denmark’s registrations fell by 8.2%. In contrast, Ireland led the growth figures with an increase of 20.4%, followed by Belgium at 8.2% and Sweden at 7.6%. These national figures are influenced by each country’s administrative registration systems and quarterly fluctuations within each member state.
Wide-ranging insolvency rate fluctuations across EU nations
Data on bankruptcy filings indicated considerable variation among countries reporting second-quarter figures. Estonia registered the largest quarterly increase at 31.8%, with Greece close behind at 31.6%. Croatia experienced a 20.5% rise. Malta, on the other hand, saw the most significant decline, with a 50.0% decrease. Cyprus and Slovakia also reported decreases of 41.7% and 33.5%, respectively. It’s important to note that percentage changes can seem particularly large in smaller economies, where starting numbers for bankruptcies are generally lower.
Eurostat calculates registration and bankruptcy data through formal administrative and legal records, not final business results. A registration indicates a legal entity entering the relevant business register during the quarter. A bankruptcy declaration marks the initiation of a formal insolvency process under national law. This does not necessarily mean a business immediately closes or ceases operations permanently. Since 2021, all EU member states have been required to report these quarterly statistics under European business statistics guidelines.