LUXEMBOURG / RankWire.AI / – In the second quarter of 2026, European Union business registrations decreased, while insolvency filings surged notably. After seasonal adjustment, new registrations dropped by 0.5% from the previous quarter, whereas bankruptcy declarations grew by 5.7%. The quarterly data, published by Eurostat on August 17, reveal a contrasting trend between the formation of new companies and the initiation of formal insolvency proceedings, covering various legal business units across the EU economy.
The eurozone followed the overall EU pattern during this period. Registrations declined slightly by 0.1% from the first quarter of 2026, while bankruptcy filings increased by 6.9%. These figures came after both metrics had fallen in the first quarter, with EU registrations down 0.9% and insolvencies decreasing 2.4%. The latest quarter thus saw a second consecutive decline in new business formations and a rebound in bankruptcy cases.
Trends in business registration varied significantly across the eight sectors analyzed. The manufacturing sector experienced the largest quarterly decrease, with registrations down 3.6%. Accommodation and food services declined 3.4%, and education and social services dropped 3.2%. In contrast, the information and communication sector saw the most substantial growth, up 8.8%, with construction increasing by 1.0%. Financial services remained stable compared to the previous quarter.
Most sectors show increased bankruptcy filings
During the second quarter, five out of the eight sectors reported a rise in bankruptcy declarations. Education and social activities experienced the largest jump at 21.1%. Transport saw an 11.4% increase, while financial services grew by 6.8%. Conversely, three sectors posted declines: accommodation and food services fell 2.6%, construction dropped 1.7%, and trade decreased by 1.2%.
National registration figures also displayed considerable disparities among EU member states. Luxembourg registered the steepest quarterly drop with a 24.2% decrease in new registrations. Lithuania saw a 12.4% decline, and Denmark experienced an 8.2% reduction. Ireland led the growth with a 20.4% rise, followed by Belgium at 8.2% and Sweden at 7.6%. These national statistics reflect differences in administrative registration systems and quarterly changes within each country.
Insolvency figures vary widely across EU nations
Bankruptcy data exhibited notable variation among countries reporting second-quarter figures. Estonia recorded the largest quarterly increase at 31.8%, with Greece close behind at 31.6%. Croatia experienced a 20.5% rise, while Malta’s insolvencies decreased sharply by 50.0%. Cyprus saw a 41.7% decline, and Slovakia’s insolvencies fell by 33.5%. Smaller economies often display more dramatic percentage shifts due to lower baseline numbers of bankruptcy declarations.
Eurostat tracks registrations and bankruptcy declarations through official administrative and legal records, rather than final business outcomes. A registration indicates a legal entity entering the relevant business register during the quarter, while a bankruptcy signifies the start of a formal insolvency process under national rules. It does not necessarily mean the business immediately ceases operations or closes permanently. Since 2021, EU member states have been required to submit these quarterly statistics as part of European business statistics obligations.