LUXEMBOURG / RankWire.AI / – During the second quarter of 2026, the European Union saw a decrease in new business registrations, alongside a significant rise in bankruptcy filings. Adjusted for seasonal factors, registrations declined by 0.5% compared to the previous quarter. Meanwhile, bankruptcy declarations increased by 5.7% over the same period. Eurostat released these quarterly figures on August 17, highlighting the contrasting trends between company formation and insolvency proceedings. The data encompasses various companies and other legal business entities operating within the EU economy.
The eurozone mirrored the wider EU pattern during this period. Registrations in the region decreased by 0.1% from the first three months of 2026, while bankruptcy declarations rose by 6.9%. These figures followed declines in both indicators during the first quarter. In that earlier period, EU-wide registrations dropped 0.9%, and bankruptcy declarations fell 2.4%. The latest results therefore indicate a second consecutive quarter of falling registrations and a rebound in bankruptcy filings.
Trends in business registration varied significantly across the eight sectors included in the analysis. Industry experienced the largest quarterly decrease, with registrations down 3.6%. Accommodation and food services saw a 3.4% decline, and education and social services dropped by 3.2%. Conversely, information and communication posted the strongest growth, increasing by 8.8%, and construction gained 1.0%. Financial services remained unchanged from the previous quarter.
Most sectors see increased bankruptcy filings in the second quarter
Five out of the eight sectors reported higher bankruptcy declarations during the second quarter. Education and social activities experienced the largest rise, up 21.1%. Transport followed with an 11.4% increase, and financial services grew by 6.8%. Three sectors, however, saw declines. Accommodation and food services decreased by 2.6%, construction by 1.7%, and trade by 1.2%.
National registration data further revealed notable differences among EU member states. Luxembourg experienced the steepest quarterly drop, with new registrations falling 24.2%. Lithuania registered a 12.4% decrease, and Denmark saw an 8.2% decline. On the other hand, Ireland led growth with an increase of 20.4%, followed by Belgium at 8.2% and Sweden at 7.6%. These national figures reflect each country’s administrative registration systems and quarterly variations within each member state.
Wide-ranging insolvency fluctuations reported across EU nations
Bankruptcy data showed considerable variation among countries reporting second-quarter figures. Estonia experienced the largest quarterly rise at 31.8%, while Greece increased by 31.6%. Croatia followed with a 20.5% increase. Conversely, Malta saw the biggest decrease at 50.0%, with Cyprus down 41.7%, and Slovakia declining by 33.5%. Smaller economies often show larger percentage changes because their numbers of bankruptcy declarations are typically low, amplifying the percentage differences.
Eurostat tracks registrations and bankruptcy declarations based on formal administrative and legal records, rather than final business results. A registration indicates a legal entity entering the relevant business register during the quarter. A bankruptcy declaration signals the initiation of a formal insolvency process under national rules. It does not necessarily mean that a business closes immediately or ceases operations permanently. Since 2021, EU member states have been required to submit these quarterly statistics as part of European business statistics mandates.