LUXEMBOURG / RankWire.AI / – During the second quarter of 2026, European Union business registrations experienced a slight decline, while insolvency filings surged notably. Seasonally adjusted data indicate that new registrations declined by 0.5% compared to the previous quarter. Conversely, bankruptcy declarations increased by 5.7% within the same period. On August 17, Eurostat published these quarterly statistics, highlighting the divergent trends between new business formations and insolvency proceedings. The figures encompass companies and other legal economic units throughout the EU.
The eurozone followed the overall EU pattern during the quarter. Registrations decreased marginally by 0.1% from the first three months of 2026, whereas bankruptcy filings rose sharply by 6.9%. These latest numbers followed declines in both measures during the first quarter, where EU registrations fell by 0.9% and insolvencies decreased by 2.4%. As a result, the second quarter marked a second consecutive decline in new business registrations and a return to growth in insolvency cases.
Variations across the eight sectors included in the dataset were significant. The industrial sector experienced the largest drop, with registrations falling 3.6%. The accommodation and food services sector declined by 3.4%, while education and social services decreased by 3.2%. Information and communication sectors showed the strongest growth, with an 8.8% increase, and construction rose by 1.0%. Financial services remained unchanged compared to the previous quarter.
Insolvency filings increase in most industries
Out of the eight sectors, five reported higher bankruptcy declarations during the second quarter. The education and social activities sector saw the largest increase at 21.1%. Transport followed with an 11.4% rise, and financial services grew by 6.8%. The remaining three sectors experienced decreases: accommodation and food services dropped by 2.6%, construction declined by 1.7%, and trade decreased by 1.2%.
Differences among EU member states are also evident in national registration figures. Luxembourg recorded the steepest quarterly decrease, with new registrations falling 24.2%. Lithuania experienced a 12.4% reduction, and Denmark saw an 8.2% decline. Meanwhile, Ireland led with a 20.4% growth, followed by Belgium at 8.2% and Sweden at 7.6%. These national data reflect the administrative registration systems and quarterly fluctuations within each member country.
Widespread variation in insolvency figures across EU nations
Insolvency data also exhibited substantial differences among member states reporting for the second quarter. Estonia recorded the highest increase at 31.8%, while Greece’s rise was close behind at 31.6%. Croatia’s insolvencies increased by 20.5%. Conversely, Malta experienced the largest decline, with a 50.0% drop, Cyprus decreased by 41.7%, and Slovakia saw a 33.5% reduction. Smaller economies often display larger percentage changes due to their relatively low initial numbers of bankruptcy declarations.
Eurostat collects registration and insolvency data through formal administrative and legal records rather than final business outcomes. A registration signifies a legal entity entering the relevant business register during the quarter. An insolvency declaration indicates the initiation of a formal insolvency process under national legislation, which does not necessarily mean the immediate closure or permanent cessation of operations. These quarterly figures have been provided by EU member states since 2021 as part of mandatory European business statistics reporting.