Europe’s economic losses from droughts and floods exceed €43 billion

What a misfortune: Europe has lost billions of euros because of severe weather! Droughts and floods are to blame. As a result, EU countries’ expenditures have exceeded €43 billion. That is discouraging.

According to The Guardian, Europe lost billions of euros due to heatwaves, drought, and floods. Economic costs from these harsh weather conditions topped €43 billion during the summer. Preliminary estimates suggest that by 2029, losses could rise to $126 billion. That is unprecedented! The countries hit hardest by bad weather were Cyprus, Greece, Malta, and Bulgaria, which lost almost 1% of their GDP. The least damage from droughts and floods was suffered by other Mediterranean countries like Spain, Italy, and Portugal. Due to climate change, the probability of severe heat in Spain and Portugal has increased 40-fold, and in Greece and Turkey, tenfold. According to experts, deaths from June’s silent yet destructive heatwave have increased in 12 major cities. Environmental pollution from global warming has also contributed. 

Economists from the University of Mannheim and the European Central Bank (ECB) believe these numbers do not account for extensive wildfires that ravaged southern Europe in August or the combined effect of extreme weather events. When assessing economic losses, specialists say it is essential to consider not only the destruction of property or insurance payouts but also indirect impacts, such as the reduced hours construction workers can work during heatwaves or the increased travel times after floods damage railways. According to Gert Beynens, an economist at the National Bank of Belgium, failing to include such consequences may result in underestimating the damage by 30%.