Fewer bankruptcies compared to many EU countries

In 2020, the number of bankruptcies within the EU was lower than in 2015, as was the case in the Netherlands. From Q3 2017 until mid-2019, the trend was slightly upward in the Netherlands: around 60 percent of the number in 2015. Within the EU, the number of bankruptcies was stable for several years from the end of 2016 onwards, at approximately 80 percent of the level in 2015. In early 2020, this was followed by a decline which continued into the second quarter. Subsequently, the number of bankruptcies rose across the EU while it declined substantially in the Netherlands. This cannot be seen in isolation from the COVID-19-related government support provided to Dutch businesses. The level of support was not the same in all EU countries and the range of support measures also varied by country.

In only three EU countries that submitted data, the number of bankruptcies was higher in Q1 2021 than in the same quarter last year. At 150 percent, the increase was strongest in Romania, and also Spain recorded more than twice as many bankruptcies. In Belgium, France and Germany, however, the number of bankruptcies in Q1 2021 was down year-on-year. The decline in bankruptcies in the Netherlands was relatively stronger.

Large quarter-on-quarter fluctuations

In the quarters preceding the coronavirus outbreak, the number of bankruptcies in Belgium, France and Germany fluctuated, although there was a downward trend. The number in the Netherlands rose slightly during this period and declined as of Q3 2020. In Belgium and France, on the other hand, the number of bankruptcies decreased strongly in the second quarter. In the following quarter, the number increased again in both countries, but did not reach pre-coronavirus levels. Germany saw a decline in the third quarter of 2020, but it was not as strong as in the Netherlands.

In addition to support measures as seen in the Netherlands, a specific bankruptcy prevention measure was implemented in Belgium, France and Germany. For example, Belgium introduced a moratorium on bankruptcies until mid-June 2020. This prevented bankruptcy proceedings from being initiated for companies that were still in good health up to 18 March. In France and Germany, similar changes were made to bankruptcy procedures.

Record number of bankruptcies in Spanish accommodation and food services sector

In Q1 2020, the number of bankruptcies in the Netherlands decreased, but there were nearly 30 percent more bankruptcies in accommodation and food services. The increase stood at 25 percent in Q2 2020. In Spain, Italy and our neighbouring countries, however, the number of bankruptcies in this sector declined in Q2; in Italy, even by nearly 60 percent. In Q3 2020, the number fell by almost 47 percent in the Netherlands, while Spain and Italy recorded a sharp increase, also in the fourth quarter. In Q1 2021, the number of bankruptcies in the Spanish accommodation and food services sector was more than three times as high as in 2019.