Heatwaves and energy crunch: Can Europe withstand a double shock?

Heatwaves are squeezing expansion and productivity while the Iran war drives up Europe's energy costs.

Key points

• Dutch bank Triodos notes that wipes out almost all the expansion the bloc was projected to generate in 2026.
• Europe's economy is already under pressure from higher energy rates driven by the Iran war.
• Wildfires are burning, crops are failing and rivers are running dry.

What happened

Wildfires are burning, crops are failing and rivers are running dry. Europe is baking under its fifth heatwave of the year. Economists warn extreme heat is becoming an economic risk – hitting output, tourism, food rates, insurance, and public budgets all at once. The bill? Meanwhile, an estimated $209bn this year, roughly 1 percent of EU GDP.

Dutch bank Triodos notes that wipes out almost all the expansion the bloc was projected to generate in 2026. And this isn't happening in isolation.

The bottom line

In short, heatwaves and energy crunch: Can Europe withstand a double shock? Is the central thread here, and readers can expect follow-up reporting as the picture becomes clearer.