Home » Bankruptcies in Europe surge to record levels
Bilateral Relations Brussels Business Defence Democracy Economy Environment Europe European Union Featured Global News National Security News Politics World News

Bankruptcies in Europe surge to record levels

Bankruptcies in the EU have soared to record levels, as businesses across the continent struggle to stay afloat amid steep energy costs and general high inflation.

According to a study published on Thursday by Eurostat, the EU’s official statistics office, insolvencies in the EU rose by 8.4% in the second quarter of this year compared to the previous quarter.

The spike represents the sixth consecutive quarterly increase, and means that bankruptcies in the bloc are now at their highest levels since Eurostat began collecting data in 2015.

All sectors of the European economy registered quarterly increases in the number of bankruptcies, with the hardest-hit sectors being accommodation and food services (23.9%), transportation and storage (15.2%), and education, health and social activities (10.1%).

The study also noted that only two sectors of the European economy are currently experiencing a bankruptcy rate lower than before the Covid-19 pandemic, namely industry (-11.5%) and the construction sector (-2.7%).

Eurostat’s study follows another recent report by Statbel, Belgium’s official statistics office, which found that Belgium’s bankruptcy rate has reached its highest level in five years.

The study noted that a total of 1,092 bankruptcies were recorded in Belgium in June: a 26.4% increase compared to May, and more than any month since October 2018.

All of Belgium’s regions registered an increase in insolvencies from May to June. Flanders was especially badly hit, with bankruptcies in the country’s Dutch-speaking region reaching their highest levels since October 2013.

Flanders also posted an all-time record for bankruptcies over the first six months of the year, surpassing its previous record (set in 2013) by 7.6%.

Source: The Brussels Times