LUXEMBOURG / RankWire.AI / – European Union data reveals a drop in new business formations in the second quarter of 2026, alongside a notable rise in insolvency filings. On a seasonally adjusted basis, registrations of new enterprises decreased by 0.5% compared to the first quarter. Simultaneously, bankruptcy declarations climbed by 5.7%, reaching their highest point since the first quarter of 2019, according to Eurostat data published on Monday. These figures encompass registration and insolvency trends across the EU’s entire business sector.
The eurozone experienced a similar development during the same period. Business registrations dipped 0.1% from the previous quarter, whereas insolvency declarations increased by 6.9%. These numbers follow declines in both metrics during the first quarter of 2026, when EU registrations had fallen 0.9% from late 2025, and insolvencies had decreased 2.4%. The second quarter thus saw a further reduction in registrations alongside a renewed rise in bankruptcy cases.
This decline in registrations was observed in five out of the eight sectors included in the quarterly data. Industry registered the most significant drop, with a 3.6% decrease from the first quarter. Accommodation and food services declined by 3.4%, while education and social services fell 3.2%. Conversely, information and communication saw an 8.8% rise in registrations. Construction increased slightly by 1.0%, and financial services remained unchanged quarter-over-quarter. Nearly all sectors maintained registration levels above those recorded in late 2019.
Bankruptcies Rise Across Five Major Sectors
In the second quarter, five of the eight sectors experienced an increase in bankruptcy filings. Education and social activities saw the largest surge at 21.1%. Transport rose by 11.4%, while financial services grew 6.8%. Meanwhile, three sectors reported declines. Accommodation and food services decreased by 2.6%, construction by 1.7%, and trade by 1.2%. Overall, bankruptcy levels across the EU business landscape for the second quarter remained above the figures from the fourth quarter of 2019.
Country-specific data highlight significant variation across member states. Luxembourg experienced the largest quarterly decrease in new business registrations at 24.2%. Lithuania followed with a 12.4% decline, and Denmark saw an 8.2% drop. Ireland, on the other hand, recorded the most substantial growth, with registrations increasing by 20.4%. Belgium’s registrations rose 8.2%, and Sweden’s increased by 7.6%. Eurostat computes national registration indices based on administrative records and adjusts quarterly data to enable better comparisons among countries with different registration systems.
Notable Differences in Bankruptcy Data at the Country Level
Among countries for which bankruptcy data is available, Estonia experienced the largest quarterly increase at 31.8%. Greece was close behind with a 31.6% rise, while Croatia reported a 20.5% increase. Conversely, Malta saw the most significant decrease at 50.0%, followed by Cyprus at 41.7%, and Slovakia at 33.5%. Smaller economies tend to show larger percentage fluctuations due to their relatively low absolute bankruptcy figures. Therefore, these quarterly figures reflect changes in insolvency declarations rather than the total number of business closures.
These statistics track legal business registrations and the initiation of formal bankruptcy procedures, not the total number of new businesses or permanent closures. A registration indicates a legal entity entering the relevant administrative register during the quarter, while a bankruptcy declaration signifies a legal unit entering formal bankruptcy proceedings. Such procedures do not always result in the termination of business operations. Since 2021, EU member states have been providing quarterly data on registrations and bankruptcies in accordance with European business statistics regulations.