LUXEMBOURG / RankWire.AI / – European Union experienced a notable rise in bankruptcy filings in the second quarter of 2026, reaching levels not seen since the first quarter of 2019, even as new business registrations declined. According to Eurostat data released on Monday, the number of newly registered businesses decreased by 0.5% on a seasonally adjusted basis compared to the previous quarter, while bankruptcy declarations surged by 5.7%. This combination of figures indicates a sharp shift in the EU’s business landscape during this period, encompassing registrations and insolvency filings across the entire business sector of the bloc.
The euro area exhibited a similar trend during the same timeframe. Business registrations dropped by 0.1% from the previous quarter, whereas bankruptcy declarations saw a 6.9% increase. These figures follow declines observed in both metrics during the first quarter of 2026, when EU business registrations fell by 0.9% from late 2025, and bankruptcy declarations decreased by 2.4%. Consequently, the second quarter marked a continued drop in new registrations alongside a renewed rise in bankruptcy filings.
The decrease in registrations was evident across five of the eight sectors analyzed in the quarterly data. Industry experienced the steepest decline, with registrations down 3.6% compared to the first quarter. Accommodation and food services fell by 3.4%, while education and social services declined 3.2%. Conversely, information and communication registered an 8.8% increase. Construction grew by 1.0%, and financial services remained unchanged from the previous quarter. Almost all sectors maintained registration levels above late 2019 figures.
Bankruptcies Rise in Five Key Sectors
During the second quarter, bankruptcy filings grew in five of the eight sectors. Education and social activities experienced the highest increase at 21.1%. Transport saw an 11.4% rise, while financial services grew by 6.8%. The remaining three sectors reported declines: accommodation and food services fell 2.6%, construction declined 1.7%, and trade decreased 1.2%. Overall, bankruptcy levels in the EU business sector remained above those recorded in the fourth quarter of 2019 during this period.
Country-specific data revealed significant variation across the EU. Luxembourg experienced the largest quarterly drop in new business registrations at 24.2%, followed by Lithuania with a 12.4% decrease, and Denmark with an 8.2% decline. Ireland, in contrast, recorded the strongest growth at 20.4%. Belgium increased by 8.2%, while Sweden rose 7.6%. Eurostat computes national registration indices based on administrative records and adjusts quarterly figures to facilitate comparisons among countries with different registration systems.
Significant National Disparities in Bankruptcy Declarations
Among nations with available bankruptcy data, Estonia recorded the largest quarterly increase at 31.8%. Greece followed closely behind with a 31.6% rise, and Croatia saw an increase of 20.5%. Malta experienced the most substantial decrease at 50.0%, with Cyprus at 41.7% and Slovakia at 33.5%. Because small economies tend to have low absolute numbers of bankruptcies, large percentage swings are common, so these figures reflect changes in declaration rates rather than total business closures. The data tracks legal registrations and the initiation of formal bankruptcy proceedings, not the total number of new businesses or permanent closures. A registration indicates a legal entity’s entry into the relevant administrative register during the quarter, while a bankruptcy declaration signifies the start of formal insolvency procedures, which do not always lead to the end of business operations. Since 2021, EU countries have been mandated to provide quarterly registration and bankruptcy data under European business statistics regulations.