European Economy Scorched by Record-Breaking Heat Waves

Europe is grappling with unprecedented economic damage from record-breaking high temperatures and droughts. The extreme heat waves, scientists say have been exacerbated by global warming, have caused significant disruptions in energy production, shipping, and public health.

Economists estimate that the damage to the European economy is already measured in hundreds of billions of euros, with costs expected to rise faster than temperatures. Europe is experiencing climate change at a rate faster than any other continent, straining public finances, causing strong inflation fluctuations, changing the map of tourism, and forcing Europe to rethink energy production and transportation.

According to ING estimates, the disruption of transport on the Rhine alone could reduce Germany's GDP this year by 0.3 percentage points. MBH Bank in Hungary estimates that every week that the country's largest nuclear power plant is out of operation could cost the economy 0.1 percentage point of GDP.

The costs of emergency response, such as fighting fires and limiting energy consumption, are further straining public budgets. German insurance company Allianz estimates that the two-week heat wave in June alone will reduce Europe's GDP by 0.3 percentage points.