The drought in Europe has reached alarming levels, prompting Romania to shut down its only operational nuclear reactor due to low water levels in the Danube, and even resorting to underwater detonations to improve water flow for cooling systems.
Hungary's Paks nuclear plant, which provides about 40% of the country's electricity, faces similar threats, while Serbia has had to reduce hydropower generation. In Germany, the Rhine River's water levels have fallen to their lowest in nearly 150 years, with the critical navigation threshold significantly breached.
This situation is expected to negatively impact Germany's GDP by up to 0.2% in the third quarter, translating to an estimated loss of 1 to 2 billion euros ($1.15 billion to $2.3 billion). The ongoing drought highlights the broader issue of water scarcity in southern Europe, where 30% of the population lives in areas facing permanent water stress.
Analysts note that businesses have been preparing for these challenges, but rising freight costs are exacerbating inflation concerns. The drought, coupled with heat waves and other climate-related issues, is creating a multifaceted economic struggle for Germany and its neighbors, affecting productivity and energy supply across the region