Europe is facing a one-two punch from extreme weather and war, which is straining its economy. Successive heatwaves are forcing drastic measures, including the shutdown of nuclear power plants and the curtailment of nuclear power due to low river levels and high temperatures.

Economic Impact

The economic impact of the heatwaves could be significant, with an estimated cost of €180 billion ($208 billion) this year, or 1% of GDP. The heatwaves are also fueling devastating wildfires and reducing crop yields, threatening to push up food prices.

The war in the Middle East has made natural gas prices climb, with the price of benchmark natural gas futures traded near their highest levels since the start of the war. The price of Europe’s benchmark natural gas contract settled at €61 ($70) per megawatt hour, well above the €32 ($37) logged on the same day in 2025.

Energy Crunch

Europeans also face the prospect of hikes to their energy bills this winter, as natural gas prices climb. The EU natural gas market is vulnerable looking ahead to peak winter demand, with storage levels the lowest for this point in the year for over a decade.

Some companies have already started adapting to the extreme weather, with a farm in England harvesting its crop at 3 a.m. to ensure it has sufficient moisture content. However, the risk of shortages is still a concern, with the European Commission saying that EU member states should be investing about €70 billion ($81 billion) per year to 2050 in climate adaptation.

Original reporting: El Paso News (HLL/CB) — read the source article.