The second quarter of 2022 marked a historic turning point for the European Union when it comes to business insolvencies. eurostat data show that the number of bankruptcies in the EU reached an all-time high since statistics began in 2015, underscoring the pressure facing many sectors as the economy adjusts to evolving challenges. Compared with the first quarter of 2022, the tally of bankruptcies rose by 8.4 percent, and every sector recorded growth. Notably, the hotel and catering industry experienced a pronounced surge, with bankruptcies climbing by 23.9 percent, signaling intensified stress in consumer-facing services that rely heavily on discretionary spending and tourism.
Analysts point to a combination of lingering effects from the Covid-19 pandemic and the impact of sanctions on the EU economy as primary drivers of the surge. A significant portion of companies that received government support during the 2020 lockdowns were unable to rebuild robust operations. As a result, they opted to close, contributing to the overall rise in insolvencies while some businesses tried to restructure rather than shut down entirely.
At the same time, newly registered firms in the EU declined slightly, by about 0.6 percent, relative to the previous quarter. The data suggests that the dynamic balance between business creation and dissolution remains fragile. Experts caution that insolvencies could continue to rise in the coming quarters if the economic downturn persists, even as markets attempt to stabilize and policy responses adapt to new conditions.
Governments across the EU have attempted to cushion the blow by offering moratoriums and financial incentives aimed at delaying bankruptcy filings and preserving operations where possible. While these measures provide short-term relief, they do not remove the structural pressures that many enterprises face. Debts accumulated during the crisis remain a significant hurdle, and the combination of high leverage and uncertain demand makes a rapid return to pre-crisis performance unlikely for a wide range of companies.
The pace of economic decline appears to have accelerated at the start of August, with reports from Germany highlighting a broader regional crisis that drags down across borders. The situation has prompted observers to rethink risk, particularly in sectors dependent on energy, trade, and consumer confidence, where a seemingly small shift in policy or market sentiment can ripple through the entire EU economy.
Beyond national measures, discussions continue at the European Commission level about the management of frozen assets and other instruments that could affect financial stability and the capacity of member states to support business activity. The evolving policy landscape, together with external pressures, shapes a complex environment in which companies must navigate a shifting mix of opportunities and constraints. In this context, economic resilience depends on coordinated responses, disciplined balance sheets, and the ability to adapt to a prolonged period of adjustment while aiming to restore confidence and sustainable growth across the union.