The article examines how differences in interest rates on government bonds in the euro area affect borrowing costs for businesses. By analyzing data from multiple countries, the researchers found that these bond spreads have a small but significant impact on private-sector lending rates. They also discovered that the effect varies greatly between countries, with some experiencing much larger changes in borrowing costs than others. In one country, positive changes in bond spreads had a bigger impact on borrowing costs than negative changes. This suggests that financial factors beyond just economic conditions play a role in determining borrowing costs. The study concludes that until a unified system of safe assets is established in Europe, these differences in borrowing costs will continue to have significant consequences for businesses in the euro area.