The European economy is facing increasing pressure, as the latest data reveals a troubling rise in business bankruptcies across the EU. While the number of new companies is increasing at a slow pace, bankruptcy rates have soared to levels not seen in recent years. Following the downturn caused by the pandemic, the anticipated recovery has been elusive, with the rate of bankruptcies nearly doubling compared to 2021. This worrying trend raises concerns about the sustainability of the economic environment in the EU.

According to Eurostat data, bankruptcies in the EU have continued to rise sharply, reaching their highest level since 2019 in the fourth quarter of 2025. The bankruptcy index, based on a reference of 2021=100, has nearly doubled, reaching almost 200 points, highlighting the significant increase in business failures since the reference year. This alarming statistic underscores the ongoing challenges faced by businesses trying to survive in a post-pandemic economic landscape.

Simultaneously, the growth in registrations of new businesses remains relatively weak, suggesting that the entrepreneurial environment is struggling amidst rising bankruptcies. With economic pressures mounting, it is essential for policymakers to assess the underlying causes and implement measures that could support business growth and foster a healthier economic ecosystem within the EU.