Business activity across the European Union showed a mixed but telling picture in the final months of 2025. New company formations continued to
grow, while bankruptcies increased at a faster pace, highlighting both entrepreneurial momentum and mounting financial pressure in parts of the economy.
According to the latest figures released by Eurostat, business registrations in the EU rose by 0.5% in the fourth quarter of 2025 compared with the previous quarter. Over the same period, bankruptcy declarations climbed by 2.5%, pointing to uneven conditions beneath the surface of the recovery.
The data are drawn from Eurostat’s quarterly statistics on new business registrations and bankruptcy declarations, covering developments from early 2019 through the end of 2025 using seasonally adjusted figures.
Strong growth in information and communication
Business registrations increased in five out of eight major sectors during the fourth quarter. The strongest performance came from the information and communication sector, where new registrations jumped by 6.4%, reflecting sustained demand for digital services, software, and data-driven business models.
Industry followed with a 4.9% rise, while accommodation and food services recorded a more modest but still positive increase of 1.3%, suggesting continued interest in tourism and hospitality despite cost pressures.
Not all sectors shared in the growth. Trade saw a slight decline in registrations of 0.3%, while construction and transport both edged down by 0.1%, indicating caution in capital-intensive and logistics-related activities.
Bankruptcies surge in hospitality and transport
On the insolvency side, trends were less encouraging. Bankruptcies increased in six of the eight sectors analyzed, with the sharpest rise in accommodation and food services, where declarations jumped by 8.6%. The sector continues to grapple with high energy prices, labor shortages, and rising financing costs.
The information and communication sector also saw a notable increase in bankruptcies, up 7.9%, while transport recorded a 5.6% rise, reflecting pressure from fuel costs and weaker freight demand.
There were, however, some pockets of relief. Trade posted a 3.4% decrease in bankruptcy declarations, and finance saw a smaller decline of 0.7%, suggesting more stable conditions in those areas.
A divided economic landscape
Overall, the Q4 2025 data point to a divided EU business environment. While entrepreneurial activity remains resilient—especially in digital and industrial sectors—rising bankruptcies underline the challenges facing companies in hospitality, transport, and other cost-sensitive industries.
The full dataset and additional breakdowns are available through Eurostat’s quarterly business statistics, offering deeper insight into how Europe’s business landscape is evolving as it moves into 2026.