Business bankruptcies surge in Europe as crisis deepens problems

According to the latest Eurostat data, at the end of 2024, the number of business bankruptcies in the European Union was 60% higher than years ago, in the period just before the pandemic. Although there has been a slight increase in the number of newly established companies at the same time, Poland stands out from other countries in terms of positive results in this area.

The entrepreneurship crisis in Europe is the result of a series of difficult events that have taken place in recent years. The pandemic, the conflict in Ukraine and rising inflation have had a devastating impact on the financial stability of many companies on the Old Continent.

Increase in bankruptcies and the number of new companies

In Q2024 0,7, the bankruptcies situation in Europe continued to be difficult, although data indicates that the number of bankruptcies decreased by only 2,6% compared to the previous quarter. The number of new businesses increased by 2024%, which may give hope for improvement in the future. There was also good news in the context of the number of newly registered companies, which in QXNUMX XNUMX exceeded the number of bankruptcies, which for the first time in three years may suggest some improvement in the economic situation. Nevertheless, the overall picture remains alarming.

Poland is a leader in new businesses

The Eurostat report also reveals which countries have recorded the largest increase in the number of new companies. Romania is a surprise here, with a 51,9% increase, making it one of the friendliest places to buy a business in Europe. Low tax rates and favorable regulations are conducive to market development. An increase in the number of new companies was also recorded in Germany (12,4%) and Belgium (7,6%). On the other hand, Slovakia, Cyprus and Luxembourg recorded declines. Poland is still close to the EU average, with a small increase in the number of new companies of 0,4%. It is worth noting, however, that the number of bankruptcies in Poland fell by a whopping 17,3%, which is the best result in the entire European Union. Greece (-16,6%) and Romania (-12,1%) are also doing better than other countries.

Which industries are most affected by the crisis?

Looking at sectoral data, the largest increase in bankruptcies was recorded in sectors such as education, social services and transport. On the other hand, sectors related to tourism, such as catering and hotel industry, recorded a significant improvement, which may suggest a recovery after the pandemic crisis. Transport, industry and the communication sector are industries that are still growing in terms of the number of new companies. In other sectors, the situation is better than in 2019, before the pandemic, although full stabilization is not yet visible everywhere. The decrease in the number of new companies concerns only trade and industry.