LUXEMBOURG / RankWire.AI / – During the second quarter of 2026, the European Union saw a decline in new business registrations, while the number of bankruptcy declarations increased markedly. After seasonal adjustment, new registrations decreased by 0.5% compared to the previous quarter. Conversely, bankruptcy filings grew by 5.7% in the same period. The quarterly data, released by Eurostat on August 17, highlights contrasting trends between the formation of new companies and the onset of insolvency proceedings. These statistics encompass businesses and other legal entities operating within the EU economy.
The eurozone followed the broader EU trend during this quarter, with registrations slipping 0.1% from the first three months of 2026, while bankruptcy declarations climbed 6.9%. These figures for the second quarter followed declines in both measures during the first quarter, when EU registrations fell 0.9% and bankruptcy filings decreased 2.4%. As a result, this latest data indicates a second consecutive quarterly drop in registrations and a resurgence in bankruptcy filings.
Performance across the eight sectors analyzed showed considerable variation. The industry sector experienced the most significant quarterly decrease, with registrations down 3.6%. The accommodation and food services sector declined 3.4%, while education and social services dropped 3.2%. Information and communication sectors saw the strongest growth, rising 8.8%, with construction increasing by 1.0%. Financial services remained stable compared to the previous quarter.
Most sectors see an uptick in bankruptcy filings
Among the eight sectors, five reported higher bankruptcy declarations during the second quarter. Education and social activities experienced the largest jump at 21.1%. Transport followed with an 11.4% increase, and financial services saw a rise of 6.8%. The remaining three sectors recorded declines; accommodation and food services decreased by 2.6%, construction dropped 1.7%, and trade fell 1.2%.
Data from individual countries also revealed notable differences among EU members. Luxembourg experienced the steepest quarterly decrease, with new registrations falling 24.2%. Lithuania saw a reduction of 12.4%, and Denmark’s registrations declined 8.2%. On the other hand, Ireland led the growth with an increase of 20.4%, followed by Belgium at 8.2% and Sweden at 7.6%. These national figures reflect differences in administrative registration systems and quarterly variations within each member state.
Insolvency levels fluctuate significantly across EU nations
The data on bankruptcy declarations also showed substantial variation among countries reporting second-quarter figures. Estonia recorded the largest quarterly increase at 31.8%, with Greece close behind at 31.6%. Croatia experienced a 20.5% rise. Malta saw the most significant decline, with a 50.0% decrease, while Cyprus dropped 41.7%, and Slovakia decreased 33.5%. Such percentage changes can appear especially large in smaller economies due to their relatively low initial numbers of bankruptcy declarations.
Eurostat measures registrations and bankruptcy declarations based on formal administrative and legal records, rather than final business outcomes. Registration indicates a legal unit entering the relevant business register during the quarter. A bankruptcy declaration signifies the beginning of a formal insolvency process under national regulations, but it does not necessarily mean that a business immediately closes or ceases operations permanently. Since 2021, EU member states have been required to submit these quarterly statistics as part of European business statistics initiatives.