LUXEMBOURG / RankWire.AI / – European Union business registration activity decreased in the second quarter of 2026, with a significant uptick in bankruptcy filings. On a seasonally adjusted basis, new business registrations dropped by 0.5% compared to the first quarter. During the same period, bankruptcy declarations surged by 5.7%, according to Eurostat figures published on Monday. These figures mark the highest level of EU bankruptcies since the first quarter of 2019. The data encompasses registration and bankruptcy figures across the entire business sector within the bloc.
A similar trend was observed in the euro area during the same period. Business registrations declined slightly by 0.1% from the previous quarter, while bankruptcy filings increased by 6.9%. These figures follow declines observed in both categories during the first quarter of 2026. EU business registrations had fallen by 0.9% in late 2025 compared to the previous quarter, and bankruptcy declarations had decreased by 2.4% during that time. The second quarter thus saw a further decrease in new registrations alongside a renewed rise in bankruptcy filings.
The reduction in registrations was evident in five of the eight economic sectors included in the quarterly data. The industrial sector experienced the most significant decline, with registrations dropping 3.6% from the first quarter. Accommodation and food services saw a decrease of 3.4%, while education and social services fell by 3.2%. Conversely, information and communication sectors experienced growth, with registrations increasing by 8.8%. Construction saw a modest rise of 1.0%, and financial services showed no change from the previous quarter. Nearly all sectors maintained registration levels above those seen in late 2019.
Bankruptcies Rise in Five Major Sectors
In the second quarter, five of the eight sectors reported an increase in bankruptcy filings. The education and social activities sector saw the most substantial increase at 21.1%. Transport registered an 11.4% rise, while financial services grew by 6.8%. Three sectors experienced a decline in bankruptcy declarations: accommodation and food services fell 2.6%, construction decreased by 1.7%, and trade declined 1.2%. Overall, bankruptcy levels across the EU business landscape remained higher in the second quarter compared to those in the fourth quarter of 2019.
Country-specific data revealed considerable variation within the EU. Luxembourg recorded the largest quarterly drop in new business registrations at 24.2%. Lithuania followed with a 12.4% decrease, and Denmark reported an 8.2% decline. Ireland was the only country to experience notable growth, with registrations increasing by 20.4%. Belgium saw an 8.2% rise, and Sweden’s registrations grew by 7.6%. Eurostat derives national registration indices from administrative records and makes quarterly adjustments to facilitate comparisons among countries with different business registration systems.
Significant National Differences in Bankruptcy Data
Among nations with available bankruptcy figures, Estonia experienced the largest quarterly increase at 31.8%. Greece followed closely with a rise of 31.6%, while Croatia reported a 20.5% increase. Malta recorded the most substantial decline at 50.0%, with Cyprus decreasing by 41.7% and Slovakia by 33.5%. Smaller economies tend to show larger percentage swings due to their relatively low absolute numbers of bankruptcy declarations. As a result, quarterly figures tend to reflect changes in declaration rates rather than the total count of businesses closing down.
These statistics track 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 entering an administrative register within the quarter. A bankruptcy declaration signifies a legal entity beginning formal insolvency procedures. This process does not necessarily lead to a complete shutdown of the business. Since 2021, EU member states have been providing quarterly data on registrations and bankruptcies under European business statistics regulations, which are mandatory.