ECB data shows 42% of firms reported increased loan rates in Q2 2026, widening the financing gap to 3% despite stable credit access.
Euro area companies faced a sharp rise in borrowing costs during Q2 2026, with a net 42% reporting higher interest rates on bank loans, up from 26% in the prior quarter. Both SMEs and large firms experienced similar increases, though credit availability remained broadly stable overall.
The ECB’s bank loan financing gap widened to 3% from 2%, reflecting divergent conditions by company size. Large firms reported improved access to credit, while SMEs saw slight deterioration. Firms cited the economic outlook as the biggest obstacle to financing, despite banks’ willingness to lend improving further.
Inflation and wage growth expectations eased, with firms projecting selling prices to rise 3.2% over the next year, down from 3.5%. Non-labour input costs and wage growth expectations also moderated, though upside risks persist.