Full report here According to the ECB’s latest Survey on the Access to Finance of Enterprises (SAFE), Eurozone companies faced significantly tighter bank lending conditions and a sharp rise in short-term inflation expectations during the first quarter of 2026.
Full report here According to the ECB’s latest Survey on the Access to Finance of Enterprises (SAFE), Eurozone companies faced significantly tighter bank lending conditions and a sharp rise in short-term inflation expectations during the first quarter of 2026. Data revealed that a net 26% of firms reported higher interest rates on bank loans, more than doubling the 12% recorded in the previous quarter.
Additional financing costs, such as fees and commissions, also surged for 37% of businesses. While the demand for bank loans remained relatively flat, the actual availability of credit deteriorated slightly, leading to expectations that external financing will continue to decline in the coming months. The general economic outlook remains the primary obstacle to securing finance, a concern now cited by over a quarter of the surveyed firms.
The report highlights a concerning disconnect between rising costs and corporate profitability. While wage expectations moderated slightly to 2.8%, non-labor input costs (driven largely by energy) are expected to jump to 5.8%. Consequently, firms have raised their selling price expectations to 3.5% for the year ahead.