Wildfires sweeping France, Spain have cost Europe $3.6 billion this year, says report

Wildfires and heatwaves in Europe caused economic losses exceeding €3 billion ($3.51 billion) in 2026, with restoration costs for the five worst-affected countries (France, Spain, Portugal, Greece, Romania) at €3.1 billion.

Nearly 500,000 hectares of land were destroyed in the first two months of the wildfire season, surpassing the European Commission's annual average loss estimate of €2.5 billion for the entire EU.

Drought has disrupted transport and industry: low water levels in the Rhine and Danube rivers affected German chemical companies BASF, Covestro, and Evonik, and threatened energy supplies.

Hungary's nuclear power station, which generates nearly half of the country's electricity, is expected to shut down due to insufficient cooling water; Romania suspended operations at one reactor at its Cernavoda nuclear plant.

Experts warn the true economic toll will be higher due to insurance claims, crop losses, tourism disruption, and long-term costs like higher premiums and reduced tourist arrivals.