A recent study estimates that the extreme weather events of summer 2025, including heatwaves, droughts, and floods, caused €43 billion in immediate economic losses across Europe, affecting infrastructure, agriculture, and causing direct destruction.

The most impacted countries are Spain, France, and Italy, each facing damages exceeding €10 billion, with projections suggesting these damages could surpass €30 billion in the medium term.

Researchers warn that these costs are just the beginning, with potential macroeconomic damages reaching €126 billion by 2029 due to long-term impacts such as inflation, reduced productivity, and increased reconstruction needs.

Experts advocate for proactive adaptation strategies, including strengthening infrastructure, establishing early warning systems, and integrating climate risk assessments into policy planning.

The tourism industry faces long-term threats from climate variability, with infrastructure failures and damage to attractions risking declining competitiveness if adaptive measures are not implemented.

Post-extreme events, work productivity declines partly due to investments in adaptation infrastructure like air conditioning and flood protection, which are less economically efficient than other investments.

The findings highlight the long-term economic risks of climate change, emphasizing the urgent need for adaptation and mitigation strategies to address increasing damages.

Experts emphasize that current metrics underestimate total costs by excluding indirect effects such as supply chain disruptions and social impacts, calling for more comprehensive assessments.

Economic losses are often underestimated, as traditional insurance figures only cover material damages and do not account for indirect effects like reduced productivity and long-term economic impacts.

Overall, climate-induced weather extremes are increasingly costly for Europe, with damages persisting and worsening over time, driven by more frequent and severe events due to climate change.

Climate change has significantly increased the likelihood of severe weather events, making wildfires in Spain and Portugal 40 times more probable, with heatwave death tolls tripling in major cities, highlighting the intensifying severity.

Long-term effects include a decline in Europe's GDP, dropping by 1.5 to 3 percentage points following heatwaves and droughts, especially impacting low-income and high-temperature regions.