Romania Sees Surge in New Businesses Amidst Rising Insolvencies, Eurostat Data Reveals
Brussels, Belgium – Romania ranks third in the European Union for new company registrations in the second quarter of 2025, according to recently released Eurostat data, even as the country experiences a meaningful increase in business insolvencies. The findings paint a picture of a dynamic, yet fragile, economic landscape across the EU.
The Q2 2025 data reflects broader trends observed since 2018. Between 2018 and 2019, business registrations across the EU experienced slow, steady growth. This was sharply interrupted in early 2020, with both Q1 and Q2 witnessing ample declines in new company formations due to pandemic-related lockdowns, economic uncertainty, and investment freezes.
A recovery began in Q3 2020,spurred by government stimulus packages and support schemes. From Q1 2022, new registrations generally increased, culminating in a record high in Q4 2024 - the strongest performance since Q1 2018. While registrations dipped in Q1 2025, they rebounded strongly in Q2, with Romania playing a key role in this upswing.
Conversely, the trend for insolvencies is reversed. Insolvencies declined in 2020 due to government moratoriums and financial aid.However, they began to rise again in 2021 as support measures were withdrawn, peaking around mid-2024. in Q2 2025,insolvencies reached their highest level since 2018,remaining elevated.
The Eurostat findings highlight a contrasting reality: thriving new businesses alongside increasing financial distress. Romania’s strong entrepreneurial momentum is evident, but existing businesses are facing significant financial strain.
Policymakers in Romania may need to balance support for start-ups with measures to prevent insolvencies, potentially including improved access to financing, tax relief, or targeted support for specific sectors.
At the EU level,the data suggests ongoing adjustments to post-pandemic conditions,inflationary pressures,and global market disruptions. The uneven recovery is illustrated by the divergence between high-growth countries like the Netherlands, Spain, and Romania, and those facing challenges like Denmark and Germany.
