LUXEMBOURG / RankWire.AI / – The European Union released data showing a decrease in new business registrations during the second quarter of 2026, alongside a notable rise in bankruptcy filings. Seasonally adjusted figures indicate that registrations dropped by 0.5% from the previous quarter, while bankruptcy declarations surged by 5.7% in the same period. Eurostat published these quarterly statistics on August 17, revealing a divergence between the rate of new business formations and insolvency proceedings. The data encompass enterprises and other legal business entities across the EU.
The euro area mirrored the broader EU trend, with registrations declining by 0.1% from the first three months of 2026, and bankruptcy declarations increasing by 6.9%. These second-quarter figures follow a decline in both indicators during the first quarter, where EU registrations fell 0.9% and bankruptcy filings decreased 2.4%. Consequently, the latest data show a second consecutive quarter of reduced registrations and a rebound in insolvency filings.
The performance across sectors was uneven. Industry experienced the most significant quarterly drop, with registrations down 3.6%. Accommodation and food services decreased by 3.4%, while education and social services fell by 3.2%. Conversely, information and communication recorded the largest increase, rising 8.8%, with construction also gaining 1.0%. The financial sector remained stable, showing no change from the previous quarter.
Bankruptcy filings increase in majority of sectors
Out of the eight sectors analyzed, five reported higher bankruptcy numbers for the second quarter. Education and social activities saw the largest jump at 21.1%. Transport followed with an 11.4% rise, and financial services grew by 6.8%. The remaining three sectors experienced declines: accommodation and food services fell by 2.6%, construction declined by 1.7%, and trade decreased by 1.2%.
National 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 decrease of 12.4%, and Denmark’s registrations fell 8.2%. Ireland reported the highest growth, up 20.4%, followed by Belgium at 8.2% and Sweden at 7.6%. These national figures are influenced by each country’s administrative registration processes and quarterly variations.
Insolvency rates vary significantly across the EU
The data on bankruptcy filings displayed considerable differences among countries reporting second-quarter figures. Estonia recorded the largest quarterly increase at 31.8%, with Greece close behind at 31.6%. Croatia experienced a 20.5% rise. Malta, on the other hand, reported the most substantial decline with a 50.0% decrease, while Cyprus fell by 41.7% and Slovakia decreased by 33.5%. Smaller economies often show larger percentage changes due to their relatively low baseline numbers of bankruptcy declarations.
Eurostat gathers data on registrations and bankruptcies through official administrative and legal records, not final business outcomes. A registration indicates a legal entity being registered in the relevant business register during the quarter, while a bankruptcy declaration initiates formal insolvency proceedings under national legislation. This does not always mean that a business immediately ceases operations. Since 2021, EU member states have been required to submit these quarterly statistics as part of European business statistics regulations.