LUXEMBOURG / RankWire.AI / – In the second quarter of 2026, the European Union experienced a decline in new business registrations alongside a notable increase in bankruptcy filings. Seasonal adjustment revealed a 0.5% decrease in registrations compared to the previous quarter, while insolvency declarations surged by 5.7%. The quarterly data released by Eurostat on August 17 highlights a divergence between the growth of new enterprises and the rise in formal insolvency procedures. These figures encompass companies and other legal business entities operating across the EU economy.
During the same period, the euro area mirrored the broader EU trend. Registrations in the region decreased by 0.1% from the first three months of 2026, whereas bankruptcy filings increased by 6.9%. Notably, both indicators had already declined in the first quarter—registrations by 0.9% and bankruptcies by 2.4%. Consequently, the latest data indicate a second consecutive quarter of falling registrations and a reversal to growth in insolvency cases.
Across the eight sectors covered by the report, trends in business registrations showed significant variation. The industry sector experienced the largest quarterly decrease, with registrations down 3.6%. Accommodation and food services dropped by 3.4%, while education and social services declined 3.2%. Information and communication sectors saw the most substantial rise, up 8.8%, with construction increasing by 1.0%. Financial services remained steady, showing no change from the previous quarter.
Bankruptcy filings increase across majority of sectors
Five out of eight sectors reported higher bankruptcy numbers during the second quarter. Education and social activities led the growth with a 21.1% rise. Transport followed with an 11.4% increase, while financial services grew by 6.8%. Conversely, three sectors experienced declines, with accommodation and food services dropping 2.6%, construction decreasing 1.7%, and trade falling 1.2%.
Nationwide registration data also revealed notable disparities among EU member states. Luxembourg experienced the steepest quarterly decline, with new registrations dropping 24.2%. Lithuania saw a 12.4% decrease, and Denmark fell 8.2%. Ireland stood out with the largest growth at 20.4%, with Belgium following at 8.2% and Sweden at 7.6%. These national figures reflect variations in administrative registration systems and quarterly changes within each country.
Insolvency rates fluctuate markedly across EU nations
The bankruptcy data also exhibited wide variation across countries reporting second-quarter figures. Estonia recorded the most significant increase at 31.8%, while Greece experienced a rise of 31.6%. Croatia’s filings grew by 20.5%. Malta’s insolvency filings declined sharply by 50.0%, with Cyprus decreasing 41.7%, and Slovakia dropping 33.5%. Such percentage changes can seem especially large in smaller economies, often due to their relatively low baseline of bankruptcy declarations.
Eurostat collects data on registrations and insolvencies through formal administrative and legal records rather than tracking ultimate business outcomes. Registration indicates a legal entity entering the relevant business register within the quarter, while a bankruptcy declaration signifies the initiation of a formal insolvency process under national laws. These declarations do not necessarily mean an immediate closure or permanent halt of operations. Since 2021, EU member states have been required to provide these quarterly statistics as part of European business statistics standards.