Since the onset of the Covid-19 pandemic, public support measures and other legal and administrative changes may have postponed bankruptcies among businesses that would have gone bankrupt in normal economic circumstances.
With the financial support provided during the peak of the pandemic ending or tapering out, certain businesses may find it difficult to meet the associated repayment obligations and hence, it might be expected that bankruptcies would begin to rise.
In 2022Q4, declarations of business bankruptcies increased significantly in the EU after being below the pre-pandemic trend since 2020Q1. However, this EU-wide development is not reflective of trends in business bankruptcy declarations in all EU Member States as these declarations have evolved very differently across Member States. In particular, the following patterns have emerged: