LUXEMBOURG / RankWire.AI / – During the second quarter of 2026, European Union business formations experienced a slight decrease, while insolvency filings surged. After seasonal adjustment, new registrations dropped by 0.5% compared to the previous quarter. In contrast, bankruptcy declarations increased by 5.7% in the same period. The quarterly data, released by Eurostat on August 17, highlight the divergent trends between new company formations and insolvency proceedings. These figures encompass firms and other legally recognized business entities within the EU economy.
The eurozone followed the overall EU pattern, with registrations decreasing by 0.1% from the first quarter of 2026, and bankruptcy declarations rising by 6.9%. Both indicators had declined in the initial quarter of the year, with EU registrations dropping 0.9% and insolvencies falling 2.4%. The latest figures thus reflect a second consecutive quarter of declining registrations and a reversal to growth in bankruptcy filings.
Trends in business registration varied significantly across the eight sectors analyzed. The manufacturing industry experienced the largest quarterly decline, with a 3.6% decrease in registrations. Accommodation and food services fell 3.4%, and education and social services saw a 3.2% reduction. Conversely, information and communication recorded the most notable increase, up 8.8%, and construction gained 1.0%. Financial services remained unchanged compared to the previous quarter.
Increase in bankruptcy filings observed across majority of sectors
Five of the eight sectors reported a rise in bankruptcy declarations in the second quarter. Education and social activities experienced the highest increase, at 21.1%. Transport followed with an 11.4% increase, while financial services rose by 6.8%. The remaining three sectors showed declines: accommodation and food services decreased 2.6%, construction fell 1.7%, and trade decreased by 1.2%.
Quarterly registration data at the national level revealed notable differences among EU member states. Luxembourg experienced the most significant drop, with new registrations declining by 24.2%. Lithuania saw a 12.4% reduction, and Denmark’s figures fell 8.2%. In contrast, Ireland led growth with an increase of 20.4%, followed by Belgium at 8.2% and Sweden at 7.6%. These national figures reflect the administrative registration practices and quarterly changes within each country.
Insolvency rates fluctuate widely across EU nations
Bankruptcy data revealed considerable variation across reporting countries during the second quarter. Estonia registered the highest quarterly increase at 31.8%, while Greece’s insolvencies grew by 31.6%. Croatia’s figures rose 20.5%. Malta experienced the largest decline at 50.0%, with Cyprus decreasing 41.7%, and Slovakia dropping 33.5%. Such percentage changes can appear especially large in smaller economies, often due to relatively low numbers of insolvency filings.
Eurostat calculates registrations and bankruptcy declarations based on formal administrative and legal records, not final business outcomes. A registration indicates a legal entity entering the relevant business register within the quarter. A bankruptcy declaration signifies the initiation of an official insolvency process under national laws. It does not necessarily imply that a business immediately ceases operations or closes permanently. Since 2021, EU member states have provided these quarterly statistics on a mandatory basis under European business statistics regulations.