LUXEMBOURG / RankWire.AI / – European Union business registration activity declined in the second quarter of 2026, while insolvency filings surged notably. On a seasonally adjusted basis, new business registrations decreased by 0.5% compared to the first quarter. Meanwhile, bankruptcy declarations grew by 5.7% over the same period, according to data published by Eurostat on Monday. This rise pushed EU bankruptcy levels to their highest point since the first quarter of 2019. The latest figures encompass registration and insolvency data across the bloc’s entire business sector.
The eurozone exhibited a similar trend during the same period. Business registrations fell 0.1% from the previous quarter, while insolvency filings increased by 6.9%. These figures follow declines seen in both metrics during the first quarter of 2026. EU business registrations had fallen 0.9% in late 2025 compared to the previous quarter, with bankruptcy declarations dropping 2.4% during that time. The second quarter, therefore, saw a further decrease in new registrations alongside a renewed rise in insolvency cases.
This decline in registrations affected five out of the eight economic sectors covered by the quarterly data. The industry sector experienced the largest drop, with registrations down 3.6% from the first quarter. The accommodation and food services sector declined 3.4%, and education along with social services decreased 3.2%. Conversely, information and communication sectors saw an 8.8% increase in registrations. Construction grew by 1.0%, and financial services remained unchanged quarter-over-quarter. In nearly all sectors, registration levels remained above the figures recorded in late 2019.
Bankruptcies Rise Across Five Major Sectors
During the second quarter, insolvency filings increased in five of the eight sectors. The education and social activities sector experienced the most significant rise at 21.1%. Transport saw an 11.4% increase, while financial services grew 6.8%. Conversely, three sectors reported a decline in bankruptcy filings. Accommodation and food services dropped 2.6%, construction decreased 1.7%, and trade fell 1.2%. Overall, the second quarter’s insolvency levels remain above those observed in the fourth quarter of 2019 across the entire business economy.
Country-specific data reveals significant variation across the EU. Luxembourg experienced the largest quarterly decline in new business registrations, at 24.2%. Lithuania followed with a 12.4% decrease, and Denmark saw an 8.2% drop. Ireland recorded the most notable growth at 20.4%. Belgium’s registrations increased by 8.2%, while Sweden saw a 7.6% rise. Eurostat estimates national registration indices based on administrative records, adjusting quarterly figures to facilitate cross-country comparisons given differing registration systems.
Significant Variations in Bankruptcy Declarations by Country
Among nations with available bankruptcy data, Estonia recorded the largest quarterly increase at 31.8%. Greece closely followed with a 31.6% rise, and Croatia saw a 20.5% increase. Malta experienced the largest decrease at 50.0%, with Cyprus dropping 41.7% and Slovakia declining 33.5%. Because small economies tend to have relatively low absolute bankruptcy numbers, large percentage swings can occur. As a result, these quarterly figures primarily reflect changes in declarations rather than the total number of firms closing permanently.
These statistics track legal registrations and the initiation of formal bankruptcy procedures, not the total number of new business formations or permanent closures. A registration signifies a legal entity entering the relevant administrative registry during the quarter, while a bankruptcy declaration indicates a legal entity beginning formal insolvency proceedings. This process does not always lead to an immediate business closure. Since 2021, EU member states have been providing quarterly data on registrations and bankruptcies as part of European business statistics requirements.