Europe's Economy Scorched by Record Heatwaves and Droughts

Europe's economy is facing a harsh reality as climate change hits home. This summer's record heatwaves and droughts have caused widespread damage to power production, shipping, and public health systems.

The economic impact of these extreme events has already reached hundreds of billions of euros, economists estimate. Hazem Krichene, an economist at Allianz, warns that the total bill for this year will be much larger than expected, exceeding previous marks.

Sehrish Usman, a University of Mannheim economist, notes that climate change is changing more rapidly in Europe than on any other continent. The damage is already stretching public finances and setting off wild swings in inflation.

The economic impact grows over the following years because extreme weather sets off a chain of slow economic consequences, according to Usman.