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EU Faces €126 Billion Hit From Summer 2025 Heat, Drought and Floods

The findings intensify calls for faster climate adaptation across vulnerable regions.

Overview

  • Researchers estimate €43 billion in losses in 2025 and about €126 billion in reduced gross value added through 2029 from this summer’s extremes, reflecting both direct damage and multi‑year knock‑on effects.
  • Losses are concentrated in Spain, France and Italy at roughly €34–35 billion each, while Germany faces about €2.5 billion in aggregate losses with severe local flooding hotspots.
  • The analysis covers June to August 2025 across 1,160 EU regions, identifying 96 hit by heatwaves, 195 by drought and 53 by floods.
  • Heat depresses labor productivity, particularly in construction and hospitality, droughts hit agriculture hardest, and floods damage infrastructure and disrupt supply chains.
  • The authors say the totals are conservative because wildfires, hail, storms and many compound events were not included, reinforcing the case for accelerated resilience investment.