LUXEMBOURG / RankWire.AI / – In the second quarter of 2026, European Union business registrations experienced a slight decrease, while insolvency filings surged. After seasonal adjustment, new company registrations dropped by 0.5% compared to the previous quarter. Conversely, bankruptcy declarations increased by 5.7% over the same period. The quarterly data, published by Eurostat on August 17, highlight a contrasting trend between entrepreneurial formation and insolvency proceedings across the EU economy, which includes companies and other legal business entities.
The eurozone followed the broader EU pattern, with registrations decreasing by 0.1% from the first quarter of 2026 and bankruptcy filings rising by 6.9%. These figures follow declines in both metrics during the first quarter, when EU registrations fell 0.9% and insolvencies declined 2.4%. The latest data therefore indicates a second consecutive quarter of decreasing registrations and a rebound in bankruptcy filings.
Trends varied considerably among the eight sectors analyzed. Industry experienced the most substantial quarterly dip with a 3.6% drop in registrations. Accommodation and food services declined 3.4%, and education and social services fell 3.2%. The strongest growth was seen in information and communication, which increased by 8.8%, with construction gaining 1.0%. Financial services remained unchanged from the previous quarter.
Bankruptcy filings increase across multiple sectors
Out of the eight sectors, five reported higher bankruptcy numbers for the second quarter. The education and social activities sector saw the largest rise, at 21.1%. Transport followed with an 11.4% increase, and financial services grew by 6.8%. Meanwhile, three sectors experienced declines: accommodation and food services fell 2.6%, construction decreased 1.7%, and trade declined 1.2% during the quarter.
National registration figures also revealed notable differences among EU nations. Luxembourg posted the largest quarterly decrease, with new registrations dropping 24.2%. Lithuania saw a 12.4% reduction, while Denmark’s registrations fell 8.2%. On the other hand, Ireland experienced the highest growth at 20.4%, with Belgium at 8.2% and Sweden at 7.6%. These national data reflect each country’s registration procedures and quarterly variations within their systems.
Insolvency rates show significant country-to-country variation
The data on bankruptcy filings also display wide differences across nations. Estonia had the largest quarterly increase at 31.8%, with Greece close behind at 31.6%. Croatia reported a 20.5% rise. Malta experienced the largest decrease, at 50.0%, while Cyprus declined 41.7% and Slovakia saw a 33.5% drop. Smaller economies often report larger percentage shifts because their bankruptcy counts tend to be relatively low, amplifying percentage changes.
Eurostat gathers registration and bankruptcy data through official administrative and legal records, not necessarily reflecting immediate business closures. A registration indicates a legal entity entering the business register during a quarter, while a bankruptcy signifies the initiation of a formal insolvency process under national law. This does not always imply the business ceases operations permanently. Since 2021, EU member states have been required to provide these quarterly statistics as part of European business statistics mandates.