Wildfires push Europe’s losses beyond €3 billion as climate extremes intensify
Wildfires and prolonged heatwaves have already caused more than €3 billion in economic losses across Europe in 2026, with Greece, Spain and France among the countries hardest hit, according to an analysis by the Financial Times.
Nearly 500,000 hectares have burned since the start of the wildfire season. The cost of restoring affected areas is estimated at €3.1 billion across the five worst-affected eurozone countries—France, Spain, Portugal, Greece and Romania.
The figure has already exceeded the European Commission’s estimated average annual wildfire-related cost of €2.5 billion for the entire European Union.
The estimates primarily cover reforestation and land restoration expenses. They do not yet include damage to homes, businesses, agricultural production, tourism or longer-term economic impacts such as rising insurance premiums and increased investment in firefighting infrastructure.
Meanwhile, persistent drought conditions are placing additional pressure on Europe’s economy. Falling water levels in the Rhine and Danube rivers have disrupted freight transportation and industrial activity, while nuclear power plants in Hungary and Romania have been forced to scale back operations due to insufficient cooling water for their reactors.
