LUXEMBOURG / RankWire.AI / – European Union business startup activity declined in the second quarter of 2026 amid a sharp rise in bankruptcy filings. On a seasonally adjusted basis, new business registrations dropped by 0.5% compared to the previous quarter, while bankruptcy declarations surged by 5.7%, according to Eurostat data published on Monday. This growth pushed EU bankruptcy numbers to their highest point since the first quarter of 2019. The latest figures encompass registration and bankruptcy trends across the entire business sector of the bloc.
The eurozone displayed a similar pattern, with business registrations slipping by 0.1% from the prior quarter and bankruptcy filings increasing by 6.9%. These figures follow declines in both areas during the first quarter of 2026, where EU business registrations fell 0.9% from late 2025 and bankruptcies decreased 2.4%. The second quarter thus marked a further decline in new registrations alongside an uptick in insolvency filings.
The decrease in registrations was observed in five of the eight sectors analyzed quarterly. The industry sector experienced the largest drop, with a 3.6% decline from the previous quarter. Accommodation and food services fell 3.4%, education and social services declined 3.2%, while information and communication registered an 8.8% increase. Construction grew by 1.0%, and financial services remained unchanged quarter-over-quarter. Most sectors still maintained registration levels above those of late 2019.
Bankruptcies Rise Across Five Key Sectors
During the second quarter, five of the eight sectors reported an increase in bankruptcy declarations. Education and social activities saw the largest jump at 21.1%. Transport grew by 11.4%, and financial services climbed 6.8%. Conversely, three sectors experienced declines: accommodation and food services fell 2.6%, construction declined 1.7%, and trade decreased 1.2%. Overall, bankruptcy levels in the EU business sector remained above the figures recorded in the fourth quarter of 2019.
Country-specific data reveal significant variation across the EU. Luxembourg experienced the largest quarterly drop in new registrations at 24.2%, followed by Lithuania at 12.4%, and Denmark at 8.2%. Ireland reported the highest growth rate at 20.4%, with Belgium increasing 8.2% and Sweden rising 7.6%. Eurostat calculates these national registration indices using administrative records, adjusting quarterly data to facilitate comparisons among countries with differing registration systems.
Marked Disparities Seen in Bankruptcy Data Across Countries
Among nations with available bankruptcy data, Estonia experienced the largest quarterly rise at 31.8%, followed closely by Greece with 31.6% and Croatia with 20.5%. Malta saw the most significant decrease at 50.0%, with Cyprus down 41.7% and Slovakia decreasing 33.5%. Small economies tend to show larger percentage swings due to their lower absolute bankruptcy figures. These quarterly figures reflect changes in bankruptcy declarations rather than the total number of businesses closing permanently.
The data account for legal registrations and formal bankruptcy procedures initiated, not for complete business closures or new company formations. A registration indicates a legal entity entering the relevant administrative system during the quarter, while a bankruptcy declaration signifies the initiation of a formal insolvency process. Such procedures do not necessarily lead to the end of a company’s operations. Since 2021, EU countries have been providing quarterly registration and bankruptcy data under European business statistics regulations.