LUXEMBOURG / RankWire.AI / – European Union business registration activity experienced a downturn in the second quarter of 2026, coinciding with a notable rise in bankruptcy filings. On a seasonally adjusted basis, new company registrations declined by 0.5% compared to the previous quarter. Meanwhile, bankruptcy declarations surged by 5.7% during the same period, according to Eurostat data published on Monday. This upward trend pushed EU bankruptcy figures to their highest level since the first quarter of 2019. The latest data encompass both business registration numbers and bankruptcy filings across the entire EU economic landscape.
The euro area exhibited a similar trajectory throughout the same quarter. Business registrations slipped marginally by 0.1%, while bankruptcy declarations grew by 6.9%. These figures followed declines observed in both categories during the first quarter of 2026. Specifically, EU business registrations had fallen by 0.9% in the first quarter from the end of 2025, and bankruptcy declarations had decreased by 2.4% during that period. Consequently, the second quarter saw a further drop in registrations paired with a renewed rise in bankruptcy filings.
Five of the eight sectors covered by the quarterly data experienced a decline in registrations. The manufacturing sector saw the most significant decrease, with registrations falling 3.6% from the previous quarter. Accommodation and food services declined by 3.4%, and education and social services dropped 3.2%. Conversely, information and communication registered an 8.8% increase. Construction grew by 1.0%, and financial services remained unchanged on a quarterly basis. In nearly all sectors, registration levels still surpassed those seen in late 2019.
Bankruptcy filings rise across five main sectors
During the second quarter, bankruptcy declarations increased in five of the eight sectors analyzed. Education and social activities experienced the largest jump, up 21.1%. Transport recorded an 11.4% rise, while financial services saw a 6.8% increase. Three sectors reported declines: accommodation and food services decreased by 2.6%, construction fell by 1.7%, and trade declined by 1.2%. Overall, bankruptcy levels in the EU economy remained higher in the second quarter compared to the fourth quarter of 2019.
Country-specific data revealed significant disparities across the EU. Luxembourg experienced the largest quarterly drop in new business registrations at 24.2%. Lithuania’s decline was 12.4%, and Denmark reported an 8.2% decrease. Ireland, on the other hand, had the strongest growth at 20.4%. Belgium increased by 8.2%, and Sweden saw a 7.6% rise. Eurostat computes national registration indices using administrative records and adjusts quarterly figures to facilitate better comparisons between countries with different business registration systems.
Variations among countries in bankruptcy declarations are significant
Among nations with available bankruptcy data, Estonia recorded the largest quarterly increase at 31.8%. Greece closely followed with a 31.6% rise, while Croatia reported a 20.5% increase. Malta experienced the largest decrease, dropping 50.0%, with Cyprus at 41.7% and Slovakia at 33.5%. Small economies tend to show large percentage swings because their absolute bankruptcy figures are relatively low, meaning these quarterly changes reflect variations in filings rather than total business closures.
The data capture legal registrations and the initiation of formal bankruptcy procedures, not the total number of new businesses or permanent closures. A registration indicates a legal entity entering the relevant administrative register during the quarter, while a bankruptcy declaration records a legal unit starting a formal insolvency process. Not all bankruptcy procedures lead to companies ceasing operations. Since 2021, EU countries have been reporting quarterly registration and bankruptcy data as part of European business statistics regulations.