Europe Faces Trillion-Euro Hit from 2025 Extreme Weather, New Analysis Reveals
BRUSSELS - Extreme weather events across Europe in the summer of 2025 have resulted in economic losses exceeding one trillion euros, according to a new analysis of meteorological data and economic modeling. The impact was particularly severe for smaller states, with Greece, Bulgaria, Malta, and Cyprus experiencing losses surpassing 1% of their Gross National Product (GNP). While the Czech Republic avoided notable weather-related damage this year, the findings underscore a growing vulnerability across the continent and a pressing need for increased investment in adaptation measures.
The analysis,mirroring methodologies used in a recent study examining economic losses from 1995-2022,goes beyond direct damages like infrastructure destruction and crop failure to include indirect costs such as production downtime,reduced working hours,supply chain disruptions,and adaptation expenses. these indirect effects, according to Stéphane Hallegatte, chief climate economist of the world Bank, are “many times greater than direct effects and last longer than people imagine.”
the summer of 2025 is shaping up to be the third warmest on record globally, with Europe experiencing particularly intense heatwaves, droughts, and floods. The economic fallout highlights the escalating financial risks posed by climate change and the critical importance of proactive adaptation strategies. Without substantial investment in these measures, similar levels of economic damage are projected to become commonplace in the coming years, threatening the overall resilience of the European economy.
