LUXEMBOURG / RankWire.AI / – European Union business registrations declined in the second quarter of 2026 as bankruptcy declarations moved sharply higher. New business registrations fell 0.5% from the first quarter on a seasonally adjusted basis. Bankruptcy declarations increased 5.7% over the same period, according to Eurostat data released on Monday. The increase took EU bankruptcy declarations to their highest level since the first quarter of 2019. The latest figures cover registrations and bankruptcy declarations across the bloc’s business economy.
The euro area showed a similar pattern during the second quarter. Business registrations slipped 0.1% from the previous quarter, while bankruptcy declarations increased 6.9%. The figures followed declines in both measures during the first quarter of 2026. EU business registrations had fallen 0.9% in the first quarter from late 2025. Bankruptcy declarations had decreased 2.4% during that period. The second quarter therefore brought another decline in registrations alongside a renewed increase in bankruptcy filings.
The registration decline reached five of the eight economic sectors covered by the quarterly data. Industry recorded the largest fall, with registrations dropping 3.6% from the first quarter. Accommodation and food services declined 3.4%, while education and social services fell 3.2%. Information and communication moved in the opposite direction, with registrations rising 8.8%. Construction increased 1.0%, and financial services showed no quarterly change. Registration levels remained above late 2019 levels in almost all sectors.
Bankruptcies increase across five major sectors
Bankruptcy declarations increased in five of the eight sectors during the second quarter. Education and social activities posted the largest rise at 21.1%. Transport recorded an 11.4% increase, while financial services rose 6.8%. Three sectors reported declines in bankruptcy declarations. Accommodation and food services fell 2.6%, construction declined 1.7%, and trade decreased 1.2%. Across the full business economy, second-quarter bankruptcy levels remained above those recorded in the fourth quarter of 2019.
Country-level figures showed wide differences across the European Union. Luxembourg recorded the largest quarterly decline in new business registrations at 24.2%. Lithuania followed with a 12.4% decrease, while Denmark reported an 8.2% drop. Ireland recorded the strongest registration growth at 20.4%. Belgium increased 8.2%, and Sweden rose 7.6%. Eurostat calculates national registration indices from administrative records and adjusts the quarterly figures to improve comparisons across countries with different business registration systems.
Country data show sharp differences in bankruptcy declarations
Among countries with available bankruptcy data, Estonia recorded the largest quarterly increase at 31.8%. Greece followed closely with a 31.6% increase, while Croatia reported a rise of 20.5%. Malta recorded the largest decrease at 50.0%, followed by Cyprus at 41.7% and Slovakia at 33.5%. Small economies can show large percentage swings because their absolute bankruptcy numbers are relatively low. The quarterly figures therefore measure changes in declarations rather than the total number of businesses closing.
The statistics track legal registrations and the start of formal bankruptcy procedures, not completed business births or permanent closures. A registration records a legal unit entering the relevant administrative register during the quarter. A bankruptcy declaration records a legal unit entering a formal bankruptcy procedure. That process does not always result in a company ending operations. EU countries have provided quarterly registration and bankruptcy data on a mandatory basis since 2021 under European business statistics rules.