Euro area businesses report higher borrowing costs

Euro area companies reported tighter lending conditions and higher borrowing costs during the second quarter of 2026, while financing needs edged higher and inflation expectations remained broadly stable, according to the European Central Bank’s (ECB) latest Survey on the Access to Finance of Enterprises (SAFE).

The survey found that firms continued to experience more restrictive bank lending conditions, particularly through higher interest rates and stricter pricing and non-pricing loan terms....