The consecutive thermal stormsthe prolonged droughts and the murderous flooding characterized in the summer of 2025 had dramatic consequences on European economywith total losses reaching 43 billion euros, according to a recent study released. However, researchers emphasize that these immediate financial costs are merely the beginning of a broader crisis.
The finding of the research, directed by Shechris Usman from the University of Mannim in Germany and with the participation of European Central Bank executives, was based on the combination analysis meteorological data and economic models. The alarming increase in frequency and intensity of extreme weather is directly attributed to the climate change.
The report takes into account both immediate disasters – such as the destruction of public infrastructure, houses, but also crops – and indirect consequences. The latter include production losses due to the required factory rehabilitation, the loss of human lives and increased costs of adaptation to new environmental conditions.
Long -term impacts and economic inflation
According to Usman, “The true cost of extreme phenomena extends far beyond their immediate impact”. A typical example is the disturbance of the availability of goods due to drought, which can lead to long -term inflation.
The study warns that on the basis of current data, by 2029, total macroeconomic costs from the natural disasters of the summer of 2025 could reach 126 billion euros.
Serious consequences for southern Europe
Particularly affected the Spainthe France and the Italywith each country recording losses of more than 10 billion euros. This may exceed € 30 billion in medium -term horizon, as this year was characterized by historical records in heat and drought.
On the contrary, central and northern European countries have suffered smaller, but increasing in frequency, damage due to new floods. The study stresses that this trend will lead to further increase in costs to manage the climate deregulation in the future.
In addition, the authors point out that today’s available data undertake the actual extent of the damage, as they do not take into account the overall impact of fuels and drought, nor significant phenomena such as fires.
Regarding the losses usually announced by reinsurance companies, it is noted that they are mainly limited to material damage and omit key indirect consequences, such as the dramatic reduction in productivity due to high temperatures.
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Source: Skai
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