LUXEMBOURG / RankWire.AI / – European Union business startup activities declined in the second quarter of 2026, while insolvency filings surged significantly. On a seasonally adjusted basis, new business registrations decreased by 0.5% compared to the first quarter. Meanwhile, the number of bankruptcy declarations rose by 5.7% over the same period, according to data published by Eurostat on Monday. This upward trend pushed EU bankruptcy filings to their highest level since the first quarter of 2019. The latest figures encompass data on new registrations and insolvency filings across the bloc’s entire business sector.
A comparable pattern appeared within the euro area during the same period. Business registrations saw a slight dip of 0.1% from the previous quarter, whereas bankruptcy declarations increased by 6.9%. These figures follow declines in both measures during the first quarter of 2026, where EU business registrations had fallen 0.9% from late 2025, and bankruptcy filings had decreased 2.4%. Consequently, the second quarter experienced another decrease in new registrations alongside a renewed rise in insolvency filings.
The decline in registrations was observed across five of the eight economic sectors included in the quarterly data. Industry experienced the steepest drop, with registrations falling 3.6% from the first quarter. Accommodation and food services declined by 3.4%, while education and social services dropped 3.2%. Conversely, information and communication saw an 8.8% increase in registrations. The construction sector grew by 1.0%, and financial services remained unchanged on a quarterly basis. Overall, in nearly all sectors, registration levels stayed above those recorded in late 2019.
Bankruptcy filings rise in five key sectors
In the second quarter, five out of the eight sectors reported an increase in bankruptcy declarations. The education and social activities sector experienced the most substantial rise, at 21.1%. Transport saw an 11.4% increase, and financial services rose by 6.8%. Three sectors, however, reported a decline in insolvency filings: accommodation and food services fell by 2.6%, construction decreased by 1.7%, and trade saw a 1.2% reduction. Overall, across the entire business economy, insolvency levels in the second quarter remained higher than those recorded in the fourth quarter of 2019.
Data at the national level revealed significant variation across EU member states. Luxembourg recorded the largest quarterly drop in new business registrations, down 24.2%. Lithuania followed with a 12.4% decrease, and Denmark reported an 8.2% decline. Ireland, in contrast, experienced the strongest growth at 20.4%. Belgium’s registrations increased by 8.2%, while Sweden saw a rise of 7.6%. Eurostat calculates these national registration indices from administrative records and adjusts the quarterly figures to facilitate more accurate cross-country comparisons, considering differing business registration systems.
Significant national disparities in bankruptcy declarations
Among countries with available bankruptcy data, Estonia experienced the largest quarterly rise, at 31.8%. Greece was close behind with a 31.6% increase, and Croatia reported a 20.5% rise. Conversely, Malta saw the largest decrease, at 50.0%, followed by Cyprus at 41.7% and Slovakia at 33.5%. Small economies can exhibit large percentage swings due to their relatively low absolute numbers of bankruptcy declarations. These quarterly figures primarily reflect changes in the number of insolvency filings rather than the total count of business closures.
The data measure legal registrations and the initiation of formal bankruptcy proceedings, not the total number of new businesses or permanent shutdowns. A registration indicates a legal entity entering the relevant administrative register during the quarter, while a bankruptcy declaration records a legal entity entering a formal insolvency process. It’s important to note that this process does not necessarily result in a business ceasing operations permanently. Since 2021, EU countries have reported quarterly registration and bankruptcy data on a mandatory basis, in accordance with European business statistics regulations.