EU business registrations rose 4.6% in the second quarter of 2025, led by transport, ICT and financial services. Bankruptcies also increased 1.7%, driven by ICT and construction, reflecting both renewed entrepreneurial confidence and pockets of strain.
New figures from Eurostat show broad-based growth in new business activity, with transport recording a 13.1% rise in registrations, ICT up 8.2% and financial services climbing 5.2%. Industry was the only sector to remain unchanged compared with the first quarter.
The Netherlands recorded the sharpest increase at 57.7%, followed by Spain at 27.6% and Romania at 19.0%. Denmark saw an 18.2% decline, while Cyprus and Germany also posted falls.
Insolvency declarations moved in the opposite direction. ICT businesses registered the largest rise in bankruptcies at 13.6%, followed by construction at 8.1%. Accommodation and food services fell 7.5%, while trade was down 3.7%.
Country-level data revealed sharp swings. Latvia saw a 70.7% jump in bankruptcy filings, with Cyprus up 66.8% and Slovakia 20.1% higher. Estonia (–28.7%), Spain (–8.3%) and Sweden (–8.1%) recorded the steepest drops.
Eurostat noted that swings in smaller economies may reflect relatively low baseline numbers, making percentage changes appear more pronounced. It also cautioned that the figures are based on legal registrations and bankruptcy filings, which may not fully capture operational business activity.
The figures highlight the EU’s uneven recovery. Sectors tied to digitisation and green mobility infrastructure show resilience, while construction and parts of ICT remain under pressure from high financing costs and tighter credit conditions. Economists suggest that while overall trends point to recovery, elevated insolvencies in certain sectors signal an environment still in transition.
Analysts will now turn to Q3 data for signs of whether the surge in new registrations can be sustained — and whether rising bankruptcies point to structural challenges or short-term market adjustments.
