The heatwaves, droughts and floods that marked the summer of 2025 caused losses of 43 billion euros to the European economy, according to a study by economists published today, which highlights that these immediate costs are just the beginning.
The study, led by Sehrish Usman of the University of Mannheim in Germany with two co-authors from the European Central Bank, relies on both meteorological data and economic models to estimate the damage caused by extreme weather events, which climate change is making more frequent and intense. The study took into account direct consequences such as the destruction of roads, buildings or crops during floods, as well as indirect ones such as production losses caused by the time it takes to rebuild a factory, loss of life and adaptation costs.
The research also included long-term impacts because “the true costs of extreme events extend far beyond their immediate effects,” said Sehrish Usman. She cited as an example the shortage or destruction of certain products linked to drought and which could lead to inflation in the more or less long term.
Taking all these elements into account, the study estimates that by 2029 the macroeconomic costs of the disasters of the summer of 2025 could reach 126 billion euros.
Spain, France and Italy stand out as the most affected countries, each facing losses exceeding 10 billion euros this year. These losses could exceed 30 billion euros in the medium term, as this summer has seen an increase in heat waves and droughts. Central and northern European countries suffer less significant damage, but floods have tended to increase in recent years, which should increase the costs of weather-related disruptions, the study notes.
