Italian small firms hit by credit crunch as banks skip regional meetings

Confcommercio Livorno reports that financing for companies with fewer than 20 employees fell 5.9%, removing €45 million from the local economy and limiting investments in digitalisation, energy efficiency and expansion. In Abruzzo, trade unions criticised the absence of representatives from the three largest regional banks at a credit observatory meeting, noting a 26% drop in credit to the smallest firms and a loss of more than 500 banking jobs over five years. The regional government has introduced guarantee funds and other measures to support credit flow, but unions warn that bank consolidation could further restrict access. ABI president Antonio Patuelli linked the broader credit slowdown to geopolitical uncertainties and rising energy costs, calling for swift European investment initiatives and reforms to stimulate private lending and protect savers.