EU Bankruptcies Rose 5.7 Percent in the Second Quarter to the Highest Level in the Published Series
Declarations of bankruptcy in the European Union rose 5.7 percent in the second quarter of 2026 from the first, Eurostat reported on 17 August, while registrations of new businesses fell 0.5 percent. Eurostat records the bankruptcy reading as the highest since the first quarter of 2019, which is where the published series begins.
Bankruptcies reversed direction while registrations did not. In the first quarter bankruptcies had fallen 2.4 percent and registrations 0.9 percent. The second quarter turned the bankruptcy line sharply positive, while registrations declined for a second consecutive quarter. In the euro area bankruptcies rose more sharply still, at 6.9 percent, while registrations were essentially flat at negative 0.1 percent.
| Quarter on quarter, seasonally adjusted | Q1 2026 | Q2 2026 |
|---|---|---|
| EU registrations | -0.9% | -0.5% |
| EU bankruptcies | -2.4% | +5.7% |
| Euro area registrations | -1.3% | -0.1% |
| Euro area bankruptcies | -2.3% | +6.9% |
The index levels show how far apart the two series have travelled. On a 2021 base of 100, EU registrations stood at 110.9 in the second quarter and bankruptcy declarations at 195.9. Registrations are about a tenth above their 2021 level while bankruptcy declarations are close to double theirs. The euro area bankruptcy index is higher still at 214.8, on the 21 country aggregate, which is the composition Eurostat uses for this release and the only one that reproduces its published 6.9 percent change. Registrations stood at 112.5 in the fourth quarter of 2025 and have fallen in each of the two quarters since.
| Index, 2021 = 100, seasonally and calendar adjusted | Q4 2025 | Q1 2026 | Q2 2026 |
|---|---|---|---|
| EU registrations | 112.5 | 111.5 | 110.9 |
| EU bankruptcies | 189.8 | 185.3 | 195.9 |
| Euro area bankruptcies, 21 countries | 200.9 | 214.8 |
One sector appears at the top of both lists, and that is the finding. Bankruptcies rose in five of eight sectors, led by education and social activities at 21.1 percent, transport at 11.4 percent and financial services at 6.8 percent. Registrations fell in five of eight, and the three largest declines were industry at 3.6 percent, accommodation and food services at 3.4 percent and education and social activities at 3.2 percent. Education and social activities is the only sector in the top three of both, with the sharpest rise in failures and the third sharpest fall in formations. Information and communication moved the other way, with registrations up 8.8 percent, extending a rise Eurostat traces to the second quarter of 2025.
Where it is happening. Among member states with data, the largest increases in bankruptcies were Estonia at 31.8 percent, Greece at 31.6 percent and Croatia at 20.5 percent. The largest declines were Malta at 50.0 percent, Cyprus at 41.7 percent and Slovakia at 33.5 percent, and Eurostat cautions that small countries produce volatile readings. On registrations, Luxembourg fell 24.2 percent, Lithuania 12.4 percent and Denmark 8.2 percent, while Ireland rose 20.4 percent, Belgium 8.2 percent and Sweden 7.6 percent.
Two different 2019 benchmarks are in the release and they do different jobs. The highest-since comparison runs to the first quarter of 2019, the start of the published series. The pre-pandemic comparison runs to the fourth quarter of 2019, the last quarter before the pandemic, and on that basis bankruptcies are above their pre-pandemic level in all eight sectors while registrations are above it in five of eight, the exceptions being trade, accommodation and food services, and industry.
What the series does not say. Eurostat is explicit that registrations count legal units entered in a register rather than enterprise births, and that bankruptcies count units that have begun a court declared procedure, which is often provisional and does not always end in the business closing. Collection was voluntary until the end of 2020, the short series limits seasonal adjustment, and some countries have asked to be excluded from European aggregates while their national methodology evolves. The figures indicate direction rather than counts of businesses opening and closing.
Why it matters: Bankruptcy declarations at the highest reading in the published series, alongside registrations falling for a second consecutive quarter, point to weaker registration activity running at the same time as elevated insolvency activity. All eight sectors sit above their pre-pandemic level, so this is a continuation of an elevated baseline rather than a break from a calm one. For investors with European exposure the sector detail is more useful than the headline, and the sectors carrying it are education and social activities, transport and financial services.
Outlook: Eurostat lists February 2027 as the next planned update of this Statistics Explained article. Information and communication is the one sector where registrations are running clearly against the trend. Education and social activities is the standout on the other side, because it ranks among the three largest adverse movements on both measures at once.
Sources: Eurostat, “Business registrations down, bankruptcies up in Q2 2026”, 17 August 2026 · Eurostat Statistics Explained, quarterly registrations of new businesses and declarations of bankruptcies, data released 17 August 2026 · Eurostat database series sts_rb_q, last updated 17 August 2026. The comparison of index levels and the observation on education and social activities appearing in both rankings are by The Edge Research Team.
