Europe is drying up — the amount of damage from the heat has been named

Europe is experiencing one of the most severe climate crises in recent years: prolonged heat waves, severe drought, and falling river water levels. Economic damage is estimated at tens and hundreds of billions of euros. French Environment Minister Monique Barbot assessed the consequences for the country at 10–15 billion euros (0.5% of GDP), while Triodos bank estimated total EU damage at 180 billion euros (1% of GDP). Drought has covered half of the EU and UK territory. France experienced its hottest July since 1900, with rainfall 70% below normal. Duisburg port is near paralysis, ThyssenKrupp cut production, and the Paks nuclear plant reduced output to 10%. Gas prices doubled to 61 euros per MWh. The heat is linked to 14,000 additional deaths. Stock markets are hitting records, ignoring climate risks.

Europe is experiencing one of the most severe climate crises in recent years. This summer, the continent faced prolonged heat waves, severe drought, and a sharp drop in river water levels. The consequences are already being felt in key economic sectors — from agriculture and industry to energy, transport, and trade. Economic damage is already estimated at tens and hundreds of billions of euros. French Environment Minister Monique Barbot last week assessed the direct and indirect consequences of this summer for the country at 10–15 billion euros, equivalent to about 0.5% of France's GDP. Dutch bank Triodos calculated that total damage to the EU economy could reach about 180 billion euros, or about 1% of the bloc's GDP. The European Commission's Joint Research Centre reported on August 11 that drought has covered half of the EU and UK territory. France experienced its hottest July since 1900, with rainfall nearly 70% below the seasonal norm. In some areas of Austria, less than a quarter of normal rainfall has fallen since mid-June, with damage to the country's agriculture estimated at about 1 billion euros. Duisburg port warned that its operations are approaching paralysis. ThyssenKrupp group reduced pig iron production due to difficulties delivering raw materials along shipping routes with low water levels. Hungary's Paks nuclear plant sharply cut output — to 10% of its 2000-megawatt capacity. On August 13, the leading European gas contract closed at 61 euros per megawatt-hour — nearly double the 2025 level. According to published estimates, the heat wave from mid-June to early July was linked to at least 14,000 additional deaths in the six most affected countries. Meanwhile, stock indices in Paris, Frankfurt, Madrid, and Milan hit historic highs. Analysts warn of stagflation risk: climate change could weaken economic growth while raising the cost of food, energy, and insurance.