LUXEMBOURG / RankWire.AI / – During the second quarter of 2026, European Union business registrations declined, contrasting with a notable increase in bankruptcy filings. Adjusted for seasonal effects, new registrations decreased by 0.5% compared to the previous quarter, whereas bankruptcy declarations climbed by 5.7% over the same timeframe. The quarterly data, published by Eurostat on August 17, highlight the divergent trends between new business formations and insolvency procedures across the EU’s corporate landscape.
The euro area followed this overall pattern with registrations falling 0.1% from the first three months of 2026, while bankruptcy declarations increased by 6.9%. These figures follow a decline in both measures during the first quarter—registrations dropped 0.9%, and bankruptcies decreased 2.4%. The recent quarter thus marked a second consecutive decline in business registrations and a return to growth in insolvency filings.
Across the eight sectors analyzed, registration trends showed significant variation. Industry experienced the largest quarterly decrease, with registrations down 3.6%. The accommodation and food services sector fell 3.4%, and education and social services declined 3.2%. Conversely, information and communication registered the strongest rise, increasing 8.8%, while construction grew by 1.0%. Financial services remained unchanged from the previous quarter.
Insolvency filings increase predominantly in several sectors
During the second quarter, five out of the eight sectors reported higher bankruptcy declarations. Education and social activities saw the largest increase at 21.1%. Transport followed with an 11.4% rise, while financial services grew by 6.8%. The remaining three sectors experienced decreases, with accommodation and food services down 2.6%, construction decreasing 1.7%, and trade falling 1.2%.
In addition, national registration data revealed considerable differences among EU member states. Luxembourg experienced the largest quarterly decline, with new registrations falling 24.2%. Lithuania saw a 12.4% decrease, and Denmark dropped 8.2%. Ireland led the growth with an increase of 20.4%, with Belgium at 8.2% and Sweden at 7.6%. These national figures are influenced by different administrative registration systems and quarterly changes within each country.
Insolvency rates vary widely across EU nations
Second-quarter bankruptcy data also showed significant variation among member states. Estonia reported the highest quarterly increase at 31.8%, with Greece close behind at 31.6%. Croatia experienced a 20.5% rise, while Malta’s figures declined sharply by 50.0%. Cyprus saw a decrease of 41.7%, and Slovakia’s drop was 33.5%. These percentage shifts can appear particularly large in smaller economies due to low initial numbers of bankruptcy declarations.
Eurostat compiles data on registrations and bankruptcy declarations based on formal administrative and legal records rather than actual business outcomes. Registration indicates a legal entity entering the relevant business register during the quarter, while a bankruptcy declaration signifies the initiation of a formal insolvency procedure under national rules. It does not necessarily mean a business immediately ceases operations. Since 2021, EU member states have been mandated to report these quarterly statistics as part of European business statistics requirements.