LUXEMBOURG / RankWire.AI / – In the second quarter of 2026, European Union business registrations declined, while insolvency filings increased significantly. New business registrations decreased by 0.5% from the previous quarter after seasonal adjustment. Meanwhile, bankruptcy declarations grew by 5.7% over the same period. Eurostat published these quarterly figures on August 17, highlighting a divergence between new company formations and insolvency proceedings. The data include companies and other legal entities within the EU economy.
The euro area mirrored the overall EU trend during this period. Registrations fell 0.1% from the first three months of 2026, while bankruptcy declarations rose 6.9%. These figures follow declines in both measures during the first quarter. EU registrations dropped 0.9% in that earlier quarter, and bankruptcy declarations decreased 2.4%. The latest data show a second consecutive decline in registrations and a resurgence in bankruptcy filings.
Trends in business registration varied significantly across the eight sectors analyzed. Industry experienced the largest quarterly drop, with registrations down 3.6%. Accommodation and food services declined 3.4%, while education and social services fell 3.2%. Information and communication saw the strongest growth, increasing 8.8%, and construction grew 1.0%. Financial services remained unchanged from the previous quarter.
Bankruptcies Rise in Most Sectors
Five out of eight sectors reported increased bankruptcy filings during the second quarter. Education and social activities had the highest rise at 21.1%. Transport followed with an 11.4% increase, and financial services grew 6.8%. The remaining three sectors experienced declines. Accommodation and food services fell 2.6%, construction dropped 1.7%, and trade decreased by 1.2%.
National registration data also revealed large differences between EU countries. Luxembourg posted the most significant quarterly decline with a 24.2% drop in new registrations. Lithuania saw a 12.4% decrease, and Denmark fell 8.2%. Ireland led growth with an increase of 20.4%. Belgium grew by 8.2%, and Sweden by 7.6%. These figures reflect each country’s registration systems and quarterly changes within each member state.
Insolvency Trends Vary Widely Across the EU
Bankruptcy data also showed considerable variation among countries reporting second-quarter figures. Estonia experienced the largest increase at 31.8%, followed by Greece at 31.6%. Croatia’s filings rose 20.5%. Malta had the biggest decline at 50.0%. Cyprus decreased 41.7%, and Slovakia’s fall was 33.5%. Smaller economies often see large percentage changes because they start from relatively low bankruptcy numbers.
Eurostat tracks registrations and insolvency declarations through official legal records, not final business outcomes. Registration indicates a legal entity entering the business register during the quarter. A bankruptcy declaration signals the start of a formal insolvency process under national law. It does not always mean the business closes immediately or ceases operations permanently. Since 2021, EU member states have been required to submit these quarterly statistics as part of European business data standards.