FT estimated the economic damage to Europe from forest fires at more than €3 billion

The heat wave and forest fires that have engulfed France, Spain and other European countries have already cost more than €3 billion in 2026. This was reported on August 3 by the Financial Times newspaper.

"In the first two months of the fire season, almost half a million hectares burned down, causing €3.1 billion in economic damage to only the five most affected eurozone countries, including Portugal, Greece and Romania," the material says.

It is noted that the damage significantly exceeds the estimates of the European Commission in the amount of € 2.5 billion.

"In the end, the total damage will be much higher. Insurance companies, households and businesses are still calculating damage to property and crops, as well as disruptions to the tourism industry in the height of summer," the article says.

A decrease in the water level in the Rhine and Danube rivers will lead to disruptions and production cuts. German chemical companies such as BASF, Covestro and Evonik have factories concentrated along the Rhine.

Record low water levels in the Danube are expected to shut down the Hungarian nuclear power plant, which provides almost half of the country's electricity. Romania was also forced to shut down one of the two reactors at the Chernavoda nuclear power plant. Both sources receive cooling water from the river.

Sarah Meyer, an expert on climate economics from ETH Zurich, said that the economic damage from fires alone could triple the annual average of 2.1 billion euros.

"If the fires reach the cities, the damage will be much, much greater," Meyer said.

It's stuffy to live: abnormal heat as a new economic norm in Europe

Temperature records on the continent are provoking a sharp increase in costs

At the end of June 2026, an abnormal heat wave swept Western European countries, primarily France and Spain, as well as Italy, Great Britain and Germany. The day before, Bloomberg reported that Europe's heavy industry is suffering due to the drying up of the region's largest rivers amid the prolonged heat wave that has hit the continent. According to forecasts, no significant improvement in the situation with rivers in Europe is expected in the near future, the article says.

The French newspaper Le Monde reported on July 31 that a forest fire in the Gironde department had almost completely destroyed the coastal commune of Les Porges: 175 houses burned down as a result of the disaster, the flames devastated half of the 15,000 hectares of municipal territory. Residents express dissatisfaction with the actions of the authorities: They believe that they were "sacrificed" to save the Cap Ferré peninsula with its luxurious villas.