Sanctions and curtailment of support programs pushed European businesses to bankruptcies

The number of corporate bankruptcy filings in the European Union in the fourth quarter of 2022 increased by 26.8% compared to the previous quarter – this was a record in the entire history of observations (conducted since 2015), follows from the February data of Eurostat. Compared to the same period in 2021, the growth was 1.5 times (Eurostat does not provide absolute figures). The main reasons for the record were the sharp curtailment of anti-COVID subsidies to businesses, the destruction of supply chains due to sanctions and rising energy prices, according to experts interviewed by Vedomosti.

The bankruptcy rate in the EU has been on the rise throughout 2022. In the third quarter of 2022, an increase of 16% was recorded compared to the second. Most bankruptcies were in the transport industry and storage (+72.2%), catering and rental housing (+39.4%), education, healthcare and social services (+29.5%), follows from Eurostat data.