In the second quarter of 2026, euro area firms reported increased interest rates and loan costs, with stable inflation expectations and strategic responses to geopolitical tensions. The survey covers 5,087 firms.
In the most recent Survey on the Access to Finance of Enterprises (SAFE), covering the second quarter of 2026, euro area firms reported a strong net increase in interest rates on bank loans (net 42%, compared with 26% in the previous quarter). Both small and medium-sized enterprises (SMEs) and large firms experienced similar increases.
Firms also reported a net 31% increase in other financing costs, such as charges, fees, and commissions, and a net 10% increase in collateral requirements (down from 14%).
Firms indicated a small increase in financing needs for bank loans (net 2%, up from 0%), while loan availability remained broadly unchanged (net -1%). Large firms showed increased financing needs (net 4%), whereas SMEs reported a decline (net -4%). The bank loan financing gap was slightly higher at 3%, up from 2%.
Firms cited the general economic outlook as the main factor constraining external financing (net 29%) but noted improvements in banks’ willingness to lend (net 6%). A net 10% of firms expect their firm-specific outlook to negatively impact financing availability.
Firms expect moderate increases in selling prices (3.2%), non-labour input costs (5.2%), and wages (2.5%) over the next 12 months. Inflation expectations remain stable at 3.0% for one and three years ahead, with a slight increase to 3.1% for five years ahead. The risk of upside inflation risks remains high at 65%.
The ongoing Middle East conflict has prompted firms to adopt strategies such as seeking alternative suppliers (36% for inputs, 29% for energy), investing in energy efficiency (31%), increasing inventories (21%), and revising insurance or trade finance arrangements (15%). Large firms are more likely to implement these measures than SMEs.
Regarding investments in artificial intelligence (AI), firms plan to fund these mainly through internal funds (72%), with external sources like bank loans, grants, or leasing each around 16%. Equity and debt securities are less common.
The survey was conducted between 21 May and 26 June 2026, with a sample of 5,087 firms across the euro area, 92% of which have fewer than 250 employees. The report and detailed data are available on the ECB’s website and Data Portal.
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