LUXEMBOURG / RankWire.AI / – European Union business registration numbers declined during the second quarter of 2026, while insolvency filings surged sharply. On a seasonally adjusted basis, new business formations decreased by 0.5% compared to the first quarter. Meanwhile, insolvency declarations increased by 5.7% over the same period, based on data released by Eurostat on Monday. This rise pushed EU insolvency figures to their highest point since the first quarter of 2019. The latest statistics encompass both new business registrations and insolvency filings across the entire business sector of the bloc.
The euro area displayed a similar trend in the second quarter. Business registrations there fell by 0.1% from the previous quarter, while insolvency filings grew by 6.9%. These figures follow declines observed in both measures during the first quarter of 2026. During that period, EU business registrations had dropped 0.9% compared to late 2025, with insolvencies decreasing by 2.4%. The second quarter thus brought another decrease in new registrations alongside a renewed rise in bankruptcy cases.
The drop in registrations affected five of the eight sectors covered by the quarterly data. Industry experienced the largest decline, with registrations down 3.6% from the first quarter. Accommodation and food services decreased by 3.4%, and education and social services fell 3.2%. Conversely, information and communication saw an increase of 8.8% in registrations. Construction grew by 1.0%, and financial services showed no change quarter-over-quarter. In nearly all sectors, registration levels remained above late 2019 figures.
Bankruptcy filings rise across five key economic sectors
During the second quarter, insolvency declarations grew in five out of eight sectors. Education and social activities experienced the largest increase, at 21.1%. Transport saw an 11.4% rise, while financial services increased by 6.8%. Three sectors reported a decline in bankruptcy filings. Accommodation and food services declined by 2.6%, construction fell by 1.7%, and trade decreased by 1.2%. Across the entire business landscape, insolvency levels in the second quarter stayed above those recorded in the fourth quarter of 2019.
Country-specific data revealed significant disparities across the EU. Luxembourg recorded the largest quarterly decrease in new business registrations at 24.2%. Lithuania followed with a 12.4% reduction, and Denmark showed an 8.2% drop. Ireland experienced the strongest growth, with a 20.4% increase in registrations. Belgium and Sweden also saw rises, at 8.2% and 7.6%, respectively. Eurostat estimates national registration indices from administrative records, adjusting the quarterly figures to facilitate comparisons between countries with different registration systems.
Wide Variations Among Countries in Bankruptcy Declaration Data
Among nations with available bankruptcy data, Estonia experienced the largest quarterly increase at 31.8%. Greece was close behind with a 31.6% rise, while Croatia saw a 20.5% increase. Malta’s bankruptcy declarations dropped sharply by 50.0%, followed by Cyprus at 41.7%, and Slovakia at 33.5%. Smaller economies can show significant percentage swings because their total bankruptcy numbers are relatively low. Therefore, these quarterly figures primarily reflect changes in declarations rather than the total number of businesses closing permanently.
The statistics track legal registrations and formal bankruptcy procedures, not the total number of new businesses or permanent closures. A registration indicates a legal entity entering an administrative register in that quarter. A bankruptcy declaration records the start of a formal insolvency process. However, this process does not always lead to a company’s complete shutdown. Since 2021, EU countries have been reporting quarterly registration and bankruptcy data on a mandatory basis under European business statistics regulations.