The wildfires raging in several European countries for another summer confirm that their increased incidence, combined with unprecedented heat waves, constitute a structural threat for the continent’s economies.
According to an analysis published in the Financial Times, more than 500,000 hectares burned in the first two months of this year’s peak wildfire danger season in the five worst affected European Union countries – France, Greece, Portugal, Romania and Spain – and the estimated economic impact has topped €3.1 billion.
This figure easily tops the European Commission forecast of an annual impact, across the whole EU, of €2.5 billion. But the Commission estimate’s are based on the so-called restoration impact, that is the cost required to return the impact areas to their previous state.
But many analysts believe that this is an inadequate measure and that total impact will be far higher.
Total impact must, among other things, include the effects on households, tourism and the higher costs of insurance.
