20 July 2026

• Firms reported further net tightening of bank loan interest rates and other loan conditions related to price and non-price factors.
• Firms signalled a small increase in financing needs, while availability of bank loans remained broadly unchanged, but with notable differences between SMEs and large firms.
• Firms expected lower increases in selling prices, non-labour input costs and wage expectations.
• Inflation expectations at the one, three and five-year horizons remained largely stable.

In the most recent round of the 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). A similar increase was observed by both small and medium-sized enterprises (SMEs) and large firms. At the same time, a net 31% of firms (down from 37% in the previous quarter) reported increases in other financing costs (i.e. charges, fees…