The latest SAFE survey for Q4 2025 reports increased interest rates and loan costs, modest rise in financing needs, and stable inflation expectations among euro area firms.
The Survey on the Access to Finance of Enterprises (SAFE) for the fourth quarter of 2025 indicates a net increase in bank loan interest rates (net 12%) and other financing costs (net 28%) among euro area firms. Both small and large firms reported similar increases.
Firms also reported a modest rise in their financing needs (net 3%) and a small perceived decline in loan availability (net -2%), leading to a financing gap index of 3%. Expectations for external financing availability remain broadly unchanged over the next three months.
Perceptions of the economic outlook as a constraint on financing remained high (net 20%), with a slight improvement in banks’ willingness to lend (net 4%). Firms experienced increased turnover (net 7%) but continued to report profit declines (net 10%). Investment activity was slightly higher (net 6%), with marginally improved future investment outlooks.
Firms expect selling prices to rise by 2.9% and wages by 3.1% over the next year. Non-labour input costs are expected to increase by 3.6%. Inflation expectations remain stable, with median forecasts at 2.6% for one year ahead and 3.0% for three and five years ahead. Most firms (56%) see upside risks to long-term inflation.
Regarding artificial intelligence, 27% of firms do not use AI, 33% use it very infrequently, 31% moderately, and 7% significantly. SMEs are less likely to use AI than large firms, but significant use is similar across firm sizes.
The survey was conducted between 19 November and 15 December 2025, involving 5,067 firms across the euro area. The report and detailed data are available on the ECB’s website and Data Portal.
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