The ECB has released its latest survey on the corporate sector in the Eurozone (h/t Kostas Kalevras). The focus has generally been on access to finances for small and medium-sized enterprises (SMEs), but the survey covers considerably more, including large firms in the euro area.
Finding customers of course has always been an issue, and in the current environment it is a struggle. But outside that category, two concerns have trended up. One is access to financing, which for larger firms seems to be more of an issue than it has been in several years. This is not surprising given the ongoing credit contraction in the Eurozone (see discussion).
The other concern that is a bit more surprising is regulation, which has increased more than any other item in the survey for both small and large firms. It seems that just like in the US, regulation is adding to the uncertainties that companies face. Regulators across the EMU nations need to pay close attention before the various regulatory efforts extinguish corporate growth, making the recovery far more difficult.
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| Source: ECB |
Eurozone company survey
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