LUXEMBOURG / RankWire.AI / – During the second quarter of 2026, business registrations within the European Union experienced a decrease, whereas the number of bankruptcy filings saw a notable increase. Adjusted for seasonal factors, new registrations decreased by 0.5% compared to the previous quarter. In contrast, bankruptcy filings grew by 5.7% over the same period. These quarterly figures, published by Eurostat on August 17, highlight contrasting trends between the formation of new businesses and insolvency proceedings. The data encompass companies and other legal entities operating across the EU’s economy.
The euro area followed the wider EU trend during this quarter, with registrations dipping by 0.1% from the first three months of 2026, while insolvency filings increased by 6.9%. These figures for the second quarter follow declines in both measures during the first quarter, where EU registrations fell by 0.9%, and bankruptcy declarations decreased by 2.4%. Consequently, the latest data indicate a second consecutive quarter of declining registrations and a rebound in bankruptcy filings.
The trends in business registrations differed significantly across the eight sectors included in the dataset. Industry experienced the largest quarterly drop, with registrations down 3.6%. Accommodation and food services saw a decline of 3.4%, and education along with social services fell by 3.2%. The information and communication sector, however, recorded the strongest growth, increasing by 8.8%, while construction grew by 1.0%. Financial services showed no change from the previous quarter.
Increased bankruptcy filings observed in most sectors
Out of the eight sectors, five reported higher bankruptcy declarations in the second quarter. Education and social activities experienced the largest rise, at 21.1%. Transport followed with an 11.4% increase, while financial services rose by 6.8%. Conversely, three sectors experienced declines: accommodation and food services dropped by 2.6%, construction decreased by 1.7%, and trade declined by 1.2% during the same period.
Data from individual EU countries also reveal notable differences. Luxembourg recorded the steepest quarterly decline, with new registrations falling by 24.2%. Lithuania saw a decrease of 12.4%, and Denmark experienced an 8.2% drop. Meanwhile, Ireland led with a 20.4% increase, followed by Belgium at 8.2% and Sweden at 7.6%. These national figures reflect variations in administrative registration processes and quarterly changes within each member state.
Wide-ranging insolvency fluctuations across EU nations
Bankruptcy figures also showed considerable variation among reporting countries for the second quarter. Estonia recorded the largest quarterly jump, at 31.8%, with Greece close behind at 31.6%. Croatia experienced a 20.5% rise, whereas Malta reported the biggest decline at 50.0%. Cyprus saw a decrease of 41.7%, and Slovakia’s decline was 33.5%. Smaller economies often show larger percentage changes due to their relatively low initial numbers of bankruptcy declarations.
Eurostat tracks registrations and bankruptcy declarations via official legal and administrative records instead of final business outcomes. A registration signifies a legal entity entering the relevant business register during that quarter. A bankruptcy declaration marks the commencement of a formal insolvency process in line with national regulations, but does not necessarily mean an immediate closure or permanent cessation of operations. Since 2021, EU member states have been required to submit these quarterly statistics as part of European business data reporting standards.