Eurostat Report Signals Modest Contraction In European Services Production

Overview Of Recent Sectoral Trends

New data released by Eurostat showed seasonally adjusted services production declining by 0.3% in both the euro area and the wider European Union during February. The decline followed stronger performance in January, when services production increased 1.0% in the euro area and 0.4% across the EU. Despite the monthly slowdown, annual figures remained positive, with services production rising 1.4% year-on-year in the euro area and 1.3% across the EU.

Sector-Specific Performance

Within the euro area, transportation and storage activities recorded a modest monthly increase of 0.2%, while accommodation and food services declined 0.6% and real estate activities fell 0.4%. Information and communication services experienced the sharpest monthly contraction, dropping 2.0%. At the same time, professional, scientific and technical activities increased 0.5%, while administrative and support services remained broadly stable.

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A similar trend emerged across the EU, although transportation and storage services declined 0.3%. Meanwhile, professional and scientific activities recorded a stronger monthly growth of 1.0%, while administrative and support services posted a slight increase of 0.1%.

Member State Dynamics

Performance varied significantly between member states during the month. Estonia recorded the steepest monthly decline at 16.3%, followed by Luxembourg at 9.5% and Denmark at 3.0%. By contrast, Bulgaria posted the strongest monthly increase at 4.6%, while Hungary and Poland recorded gains of 3.7% and 1.4% respectively.

Year-On-Year Performance And Sectoral Leadership

From an annual perspective, information and communication services remained one of the strongest-performing sectors, increasing 4.0% in the euro area. Professional, scientific and technical activities also recorded solid annual growth, rising 2.3% in the euro area and 3.0% across the EU. Accommodation and food services remained the only major sector to post an annual decline, falling 0.8% in the euro area. At the national level, Hungary led annual growth with an increase of 7.6%, while Bulgaria and Slovenia each recorded growth of 6.3%. Meanwhile, Romania experienced the steepest annual contraction at 5.3%, with Denmark and Lithuania also reporting declines compared with the previous year.

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Keve Welcomes New Cyprus Business Development Organisation

by THEFUTURE.TEAM

July 17, 2026

The Cyprus Chamber of Commerce and Industry (Keve) has welcomed Parliament’s unanimous approval of legislation establishing the Cyprus Business Development Organisation, describing it as a major step toward improving access to finance for small and medium-sized enterprises, startups and self-employed professionals.

Expanding Access To Finance

The legislation creates a new public body aimed at addressing financing gaps by supporting businesses that struggle to secure funding through traditional channels.

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According to Keve, the initiative could strengthen entrepreneurship, boost competitiveness and support Cyprus’ green and digital transition. The chamber has long argued that SMEs rely too heavily on bank financing, limiting investment, expansion and innovation.

Keve Calls For Swift Implementation

Keve said it helped shape the legislation through the consultation process and called for the organisation to become operational as quickly as possible. It also pledged to continue working with the Finance Ministry and the organisation’s management to support implementation.

How The Organisation Will Operate

Approved by Parliament on Tuesday, the legislation establishes Cyprus’ national business development body under the supervision of the Finance Minister, while the Central Bank of Cyprus will oversee anti-money laundering compliance.

The organisation will design financing programmes, provide loans and conduct studies to identify weaknesses in the financing market.

Cyprus will provide €60 million in initial capital. Over time, the body will also be able to raise funding from European and international institutions and benefit from state guarantees linked to approved strategic priorities.

Recovery Plan Milestone

Creation of the organisation is one of the final milestones under Cyprus’ Recovery and Resilience Plan and is required for the country to receive the plan’s ninth and final payment. Appointment of the board of directors remains the last outstanding step.

Before approving the bill, the Finance Ministry revised the draft following consultations with MPs and stakeholders. The changes removed provisions allowing the organisation to establish companies and narrowed the list of eligible beneficiaries by excluding small mid-cap companies.

Lawmakers also strengthened governance rules by introducing stricter board suitability requirements, conflict-of-interest safeguards, enhanced reporting obligations and borrowing limits. A seven-member board appointed by the Cabinet will oversee the organisation, while a transitional board will serve for two years until it becomes fully operational.

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