France's Summer Heatwaves Could Drain Up to €15 Billion From Economy
France's environment minister says this summer's heatwaves could cost €10-15 billion, citing INSEE estimates amid ongoing drought and water cuts.
France is bracing for a significant economic hit from this summer's prolonged heatwaves, with the environment minister estimating potential losses of €10 billion to €15 billion (approximately $17 billion).
Environment Minister Monique Barbut shared the projection on Wednesday, drawing on estimates from the national statistics agency INSEE. She noted that the period of extreme heat is not yet over, suggesting the final toll could climb further.
The figure marks a sharp escalation from the 2022 drought, which incurred €5.6 billion in direct and indirect costs. This year's heatwaves have proven longer and more intense, leading to more extensive forest fires and a sharper decline in agricultural output, Barbut explained.
Beyond the economic damage, the ongoing drought has left more than 40,000 residents facing water supply cuts, adding to the strain on communities across the country.
Economists and academics warn that Europe's record-breaking summer heat and drought could ultimately cost hundreds of billions of euros across the continent, as climate-driven extremes disrupt power generation, shipping routes, and public health systems. The widespread wildfires have also raised concerns that this could become Europe's worst season on record.