LUXEMBOURG / RankWire.AI / – European Union business registrations experienced a decrease in the second quarter of 2026, while insolvency filings surged notably. On a seasonally adjusted basis, new company registrations declined by 0.5% compared to the first quarter. During the same period, bankruptcy declarations saw a significant increase of 5.7%, according to data published by Eurostat on Monday. This rise pushed EU bankruptcy filings to their highest point since the first quarter of 2019. The latest data encompass registration and insolvency figures across the entire business sector of the bloc.
Similar trends were observed within the euro area, where business registrations fell by 0.1% from the previous quarter, while bankruptcy declarations grew by 6.9%. These figures follow declines in both metrics during the first quarter of 2026. EU business registrations had decreased by 0.9% in late 2025’s last quarter, and insolvency declarations had dropped 2.4%. The second quarter thus marked another decline in registration activity combined with a renewed rise in bankruptcy filings.
The reduction in registrations was noted across five of the eight sectors analyzed quarterly. The manufacturing industry experienced the steepest drop, with registrations decreasing by 3.6% from the first quarter. Accommodation and food services declined by 3.4%, and education along with social services fell by 3.2%. Conversely, the information and communication sector recorded an 8.8% increase. The construction sector saw a 1.0% rise, while financial services remained unchanged quarter-over-quarter. Despite the declines, most sectors still maintained registration levels above those recorded in late 2019.
Bankruptcy Filings Rise in Five Major Sectors
During the second quarter, bankruptcy declarations increased in five of the eight sectors. The education and social activities sector experienced the largest jump at 21.1%. Transport sector filings grew by 11.4%, and financial services filings rose by 6.8%. Meanwhile, three sectors saw declines. Accommodation and food services fell by 2.6%, construction declined by 1.7%, and trade decreased by 1.2%. Across the entire business environment, second-quarter bankruptcy levels remain above those documented in the fourth quarter of 2019.
Country-specific data reveal substantial variation within the EU. Luxembourg experienced the largest quarterly decline in new business registrations at 24.2%. Lithuania’s registrations decreased by 12.4%, and Denmark saw an 8.2% drop. Ireland registered the most significant growth at 20.4%. Belgium increased by 8.2%, and Sweden by 7.6%. Eurostat computes national registration indices from official records and adjusts the quarterly data to facilitate comparisons among countries with different registration systems.
Marked Variations in Bankruptcy Declarations Across Countries
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 saw a 20.5% increase. Malta experienced the most significant decrease at 50.0%, with Cyprus at 41.7% and Slovakia at 33.5%. Smaller economies often demonstrate large percentage swings due to their relatively low absolute bankruptcy figures. As such, quarterly changes primarily reflect shifts in declarations rather than total business closures.
The statistics monitor legal registrations and the initiation of formal bankruptcy proceedings, not the total number of new businesses or permanent closures. Registration indicates a legal entity entering the relevant administrative record during the quarter, while a bankruptcy declaration signifies the start of a formal insolvency process. This process does not invariably lead to a business ceasing operations. Since 2021, EU countries have been providing quarterly registration and bankruptcy data as part of mandatory reporting under European business statistics regulations.