According to Eurostat data, the number of bankruptcies in the EU also decreased, by 0.9% compared to October-December 2024. At the same time, the level in both areas remains higher than in 2018-2021.
There was no growth in new business starts in the EU in 2018 – 2019. This was followed by a significant decline in the first half of 2020 and a recovery in the second half. From the beginning of 2022 to 2024, it grew, reaching a peak at the end of 2024. And in January-March 2025, an overall decline in the number of new businesses is recorded, although it is higher than the pre-commitment level.
The dynamics of bankruptcies in EU countries are similar. There was a steady increase in this indicator from the end of 2021 to the end of 2024, but it started to moderately decline in early 2025. However, this indicator remains above the values of previous years. This may indicate both structural shifts in the business environment and the consequences of the winding down of anti-crisis support measures.
In the first quarter of 2025, the lowest growth of new businesses was recorded in the Netherlands (-38.4%), Romania (-32.3%) and Spain (-16.1%). The highest growth was recorded in Cyprus (+9.8%), Lithuania (+8.9%) and Croatia (+4.2%). These differences are explained by local conditions: changes in tax policy, regulatory reforms and measures to support startups.
Greece (+35.9%), Sweden (+22.7%) and Estonia (+20.4%) led the way in terms of bankruptcies. Strong declines were demonstrated by Cyprus (-70%), Malta (-66.6%) and Latvia (-21%). In smaller economies, such jumps are explained by the small number of such cases, which increases the impact of even minor fluctuations. National peculiarities of legislation also play a significant role: from thresholds for starting the procedure to the possibility to continue working after filing an application.
Almost all sectors are experiencing a downturn in business activity at the beginning of 2025. This is particularly noticeable in the construction, trade and IT sectors. In a number of cases (construction, hotel and restaurant services), performance was below pre-pandemic levels at the end of 2019.
The figures for the first quarter of 2025 reflect a short-term stabilization following the wave of bankruptcies in 2023-2024. Nevertheless, the decline in filings across most industries suggests a subdued business sentiment amid continued uncertainty. Although levels are above pre-crisis levels, the momentum – primarily the rise in registrations and the downturn in bankruptcies at the end of 2024 – has waned. The next quarters will show whether this respite will translate into a sustained recovery or prove to be a temporary lull.
