LUXEMBOURG / RankWire.AI / – During the second quarter of 2026, European Union saw a downturn in new business registrations, alongside a notable increase in bankruptcy filings, according to data released by Eurostat on August 17. After seasonal adjustments, the number of new registrations declined by 0.5% compared to the previous quarter, while the number of bankruptcy declarations surged by 5.7% in the same period. The quarterly figures highlight a contrasting trend between the formation of new companies and the initiation of insolvency proceedings, covering various legal business entities across the EU economy.
The eurozone followed the broader EU pattern during the same quarter, with registrations decreasing by 0.1% from the first three months of 2026, and bankruptcy declarations rising by 6.9%. These figures came after both indicators had declined in the first quarter, where EU registrations fell 0.9% and bankruptcy filings dropped 2.4%. Consequently, the latest data reflect a second consecutive quarterly decline in business registrations and a shift back to growth in bankruptcy cases.
There was considerable variation across the eight sectors included in the data. The manufacturing industry experienced the sharpest quarterly decline, with registrations down 3.6%. Meanwhile, accommodation and food services decreased by 3.4%, and education and social services fell by 3.2%. Conversely, information and communication saw the most significant increase, up 8.8%, with construction rising 1.0%. Financial services remained unchanged from the previous quarter.
Most sectors report increased bankruptcy filings
Among the eight sectors, five reported higher bankruptcy declarations during the second quarter. Education and social activities experienced the largest rise at 21.1%. Transport registered an 11.4% increase, while financial services grew by 6.8%. The remaining three sectors 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 disparities among individual EU countries. Luxembourg recorded the largest quarterly decrease with new registrations falling by 24.2%, followed by Lithuania at 12.4%, and Denmark at 8.2%. On the other hand, Ireland experienced the most significant growth at 20.4%, with Belgium at 8.2% and Sweden at 7.6%. These national figures are influenced by each member state’s administrative registration processes and quarterly variations.
EU nations show wide fluctuations in insolvency numbers
The data on bankruptcy declarations also displayed significant variation across countries reporting second-quarter figures. Estonia recorded the highest increase at 31.8%, while Greece followed closely behind at 31.6%. Croatia experienced a 20.5% rise, whereas Malta faced the largest decline at 50.0%. Cyprus saw a decrease of 41.7%, and Slovakia’s figures dropped by 33.5%. Such percentage changes can appear especially pronounced in smaller economies, where bankruptcy counts tend to be relatively low initially.
Eurostat monitors registrations and bankruptcy declarations based on formal administrative and legal records, rather than final business outcomes. Registering a company involves a legal entity entering the relevant business register during the quarter, while a bankruptcy declaration signifies 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 providing these quarterly statistics on a mandatory basis in accordance with European business statistics regulations.