Businesses in EU countries went bankrupt at record levels

In the second quarter of this year, the number of company bankruptcy filings in European Union (EU) countries increased to a record level.

The European Statistical Office (Eurostat) has published company bankruptcy data for the second quarter of 2023.

Thus, in said period, the number of company bankruptcies in EU countries increased by 8.4 percent compared to the previous quarter, reaching the highest level measured since 2015, when data began to be collected.

MOST HOUSING AND FOOD SERVICES ARE BANKRUPT

In the second quarter, business bankruptcies in all sectors of the economy increased compared to the previous quarter. By branches of activity, the greatest increase in bankruptcies has occurred in accommodation and catering services with 23.9 percent, transport and storage with 15.2 percent, and education, health and social activities with 10.1 percent.

Compared to the previous quarter, the countries with the largest increase in bankruptcy filings were Hungary (40.8 percent), Latvia (24.8 percent) and Estonia (24.6 percent).

Thus, the number of bankruptcy declarations of companies in the EU countries has increased in the last 6 quarters.
The number of new business openings also decreased 0.6 percent in the second quarter compared to the previous quarter.

Reasons such as the energy crisis in Europe and the high cost of living caused by the increase in inflation, especially in food prices, contribute to the increase in bankruptcies throughout the EU. (AA)