An impressive figure. The fires that have ravaged Europe since the beginning of summer have already caused more than 3.1 billion euros in economic losses, according to an analysis by the Financial Timescited by Europe 1. Nearly 500,000 hectares burned in just two months, notably in France, Spain, Portugal, Greece and Romania. The bill already exceeds the average annual estimate of 2.5 billion euros put forward by the European Commission.
This amount mainly covers costs related to the restoration of destroyed areas, reforestation and soil restoration. However, it does not take into account all material damage. Housing, infrastructure and agricultural operations represent an additional bill, which is still difficult to quantify. Losses linked to tourism, in the middle of the summer season, could also considerably increase the toll.
40,000 businesses affected in Gironde
In France, Gironde is among the most affected territories. The fires disrupted the activity of several industrial groups, including Safran, Dassault Aviation and Ariane Group. According to the Chamber of Commerce and Industry, 40,000 companies were directly affected and up to 150,000 employees were placed on partial unemployment. In Spain, 18,500 hectares of agricultural land were also destroyed.
The economic consequences could last well beyond the end of the fires. The increase in insurance premiums, the investments necessary to strengthen firefighting resources and the drop in tourist numbers could have a lasting impact on certain regions. In Greece, in particular, the inventory of damage is still continuing.
The drought finally aggravates the difficulties. Low levels of the Rhine and Danube disrupt river transport and slow down industrial activity. In Hungary, the decline of the Danube even led to the unprecedented shutdown of the Paks nuclear power plant. In Romania, a reactor at the Cernavoda power plant also had to be shut down due to lack of sufficient water to cool it.
