LUXEMBOURG / RankWire.AI / – In the second quarter of 2026, the European Union saw a decrease in new business registrations alongside a notable rise in bankruptcy filings. Seasonally adjusted figures indicate that registrations declined by 0.5% from the previous quarter, while bankruptcy declarations surged by 5.7%. Eurostat published these quarterly statistics on August 17, revealing contrasting trends between the creation of new companies and formal insolvency proceedings. These figures encompass legal entities and business units across the EU economy.
The euro area echoed the broader EU pattern during this period. Registrations fell by 0.1% compared to the first three months of 2026, with bankruptcy declarations increasing by 6.9%. Both measures experienced declines in the first quarter, with EU registrations dropping 0.9% and insolvencies decreasing 2.4%. The second quarter’s data thus show a consecutive decline in new business formations and a rebound in insolvency cases.
Across the eight sectors analyzed, business registration trends showed considerable variation. Industry registered the most significant quarterly drop, with a 3.6% decrease. Accommodation and food services declined by 3.4%, and education and social services fell by 3.2%. Conversely, information and communication saw the strongest growth, up 8.8%, with construction increasing by 1.0%. Financial services remained unchanged from the previous quarter.
Most sectors experience an increase in bankruptcy filings
During the second quarter, five out of the eight sectors reported higher bankruptcy numbers. Education and social activities saw the most substantial rise at 21.1%. Transport followed with an 11.4% increase, and financial services grew by 6.8%. Three sectors recorded declines: accommodation and food services dropped 2.6%, construction decreased 1.7%, and trade fell by 1.2%.
National registration data also revealed notable disparities among EU nations. Luxembourg experienced the steepest quarterly decline, with a 24.2% reduction in new registrations. Lithuania saw a 12.4% decrease, and Denmark’s registrations fell by 8.2%. Ireland led the growth figures with a 20.4% increase, followed by Belgium at 8.2% and Sweden at 7.6%. These variations reflect differences in administrative registration systems and quarterly trends within each member state.
Insolvency rates vary widely across the EU
Bankruptcy data also displayed significant fluctuation among reporting countries. Estonia registered the highest quarterly increase at 31.8%, with Greece close behind at 31.6%. Croatia experienced a 20.5% rise. Conversely, Malta recorded the largest decline at 50.0%, Cyprus saw a 41.7% decrease, and Slovakia’s filings dropped 33.5%. It is common for percentage changes to appear especially large in smaller economies, given their relatively low numbers of bankruptcy declarations.
Eurostat estimates registration and bankruptcy figures through formal administrative and legal records, not final business outcomes. A registration indicates a legal entity entering the relevant business register during the quarter, while a bankruptcy marks the initiation of a formal insolvency process under national laws. This does not necessarily mean that a business immediately closes or ceases operations permanently. Since 2021, EU member states have been required to submit these quarterly statistics as part of European business statistics obligations.