LUXEMBOURG / RankWire.AI / – European Union business registrations declined during the second quarter of 2026 as bankruptcy filings surged significantly. On a seasonally adjusted basis, new company registrations dropped by 0.5% compared to the first quarter. Meanwhile, the number of bankruptcy declarations rose by 5.7% over the same period, according to Eurostat data released on Monday. This uptick pushed EU bankruptcy figures to their highest point since the first quarter of 2019. The latest data encompasses registration and bankruptcy trends across the bloc’s entire business sector.
The eurozone exhibited a similar pattern, with business registrations falling 0.1% from the previous quarter, while bankruptcy filings increased by 6.9%. Both measures had declined in the first quarter of 2026, with EU registrations dropping 0.9% from late 2025 and bankruptcy declarations decreasing 2.4%. The second quarter thus saw registrations decline once again alongside a renewed rise in bankruptcy filings.
This decline in registrations was observed in five of the eight sectors included in the quarterly data. The industry sector experienced the largest drop, with registrations down 3.6%. Accommodation and food services declined 3.4%, and education and social services fell 3.2%. Conversely, information and communication saw an 8.8% rise in registrations. Construction increased by 1.0%, and financial services showed no change from the previous quarter. Nearly all sectors maintained registration levels above those of late 2019.
Bankruptcies Rise in Five Key Sectors
During the second quarter, five out of eight sectors experienced an increase in bankruptcy declarations. Education and social activities saw the largest jump at 21.1%. Transport recorded an 11.4% rise, and financial services increased by 6.8%. Three sectors reported declines: accommodation and food services fell 2.6%, construction decreased 1.7%, and trade dropped 1.2%. Overall, bankruptcy levels across the business sector remained above those from the fourth quarter of 2019.
Country-specific data revealed substantial variation across the EU. Luxembourg experienced the largest quarterly decline in new business registrations at 24.2%. Lithuania followed with a 12.4% decrease, and Denmark saw an 8.2% fall. Conversely, Ireland registered the strongest growth at 20.4%. Belgium increased by 8.2%, and Sweden by 7.6%. Eurostat calculates national registration indices from administrative records and adjusts quarterly figures to facilitate cross-country comparisons, considering differing registration systems.
Wide Variations in Bankruptcy Declarations Among Countries
Among nations with available bankruptcy data, Estonia experienced the largest quarterly increase at 31.8%. Greece closely followed with a 31.6% rise, while Croatia reported a 20.5% increase. Malta recorded the largest decline at 50.0%, with Cyprus at 41.7% and Slovakia at 33.5%. Small economies tend to show larger percentage swings due to their relatively low absolute bankruptcy numbers. These quarterly figures indicate changes in declarations rather than the total number of business closures.
The statistics measure legal registrations and the initiation of formal bankruptcy procedures, not the total count of new business formations or permanent closures. A registration signifies a legal entity entering the relevant administrative record during the quarter, while a bankruptcy declaration marks a legal entity entering formal bankruptcy proceedings. Not all bankruptcy procedures lead to business cessation. Since 2021, EU countries have been providing quarterly registration and bankruptcy data on a mandatory basis under European business statistics rules.