LUXEMBOURG / RankWire.AI / – In the European Union, the second quarter of 2026 experienced a decline in new business registrations alongside a notable surge in bankruptcy filings. Adjusted for seasonal effects, registrations decreased by 0.5% compared to the previous quarter, while bankruptcy declarations climbed 5.7% during the same period. Eurostat unveiled these quarterly figures on August 17, illustrating an opposing trend between new company formations and insolvency proceedings. The data encompass various legal business entities operating within the EU economy.
The euro area mirrored this pattern, with registrations falling 0.1% from the first three months of 2026 and bankruptcies increasing 6.9%. These figures follow a decline in both measures during the first quarter—registrations were down 0.9%, and bankruptcies decreased 2.4%. Consequently, the latest data indicate a second consecutive quarter of declining registrations and a reversal to growth in bankruptcy filings.
Across the eight sectors included in the survey, trends in business registrations showed considerable variation. The manufacturing sector experienced the steepest drop, with registrations declining 3.6%. Accommodation and food services decreased by 3.4%, and education along with social services saw a 3.2% reduction. Conversely, information and communication recorded the most significant rise, up 8.8%, and construction grew by 1.0%. Financial services, however, remained steady with no change from the previous quarter.
Bankruptcy filings increase in most sectors
Five out of the eight sectors reported higher bankruptcy numbers during the second quarter. Education and social activities experienced the largest increase at 21.1%. Transport registered an 11.4% rise, while financial services grew 6.8%. The remaining three sectors saw decreases: accommodation and food services fell 2.6%, construction declined 1.7%, and trade dropped 1.2%.
National-level registration data also revealed notable disparities among EU member states. Luxembourg experienced the most significant quarterly decline, with new registrations falling 24.2%. Lithuania saw a 12.4% decrease, and Denmark’s registrations dropped 8.2%. On the other hand, Ireland led growth with an increase of 20.4%, followed by Belgium at 8.2% and Sweden at 7.6%. These national figures reflect the different administrative registration systems and quarterly variations specific to each country.
Wide-ranging fluctuations in insolvency rates across EU nations
Data on bankruptcies also demonstrated substantial variation across member states reporting second-quarter figures. Estonia experienced the largest quarterly jump at 31.8%, with Greece close behind at 31.6%. Croatia’s increase was 20.5%. Malta recorded the most significant decrease, down 50.0%, while Cyprus saw a decline of 41.7% and Slovakia decreased 33.5%. These percentage changes can appear especially dramatic in smaller economies due to their lower baseline numbers of bankruptcy declarations.
Eurostat calculates registration and bankruptcy figures based on official administrative and legal records, not final business outcomes. Registration indicates a legal unit entering the relevant register during the quarter, while a bankruptcy signifies the initiation of a formal insolvency process under national law. Such a declaration does not necessarily mean an immediate closure or permanent halt of business activities. Since 2021, EU member states have been required to submit these quarterly statistics under European business statistics regulations.