This summer's record heatwaves and droughts have inflicted economic damage across Europe that economists estimate in the hundreds of billions of euros. Scientists attribute the intensified heat to global warming, and Europe is warming faster than other continents, making the region especially vulnerable. Temperatures in June and July set new records, leading to reduced river levels on the Rhine and Danube that have limited cargo transport. More than half a dozen nuclear reactors have curtailed output because of cooling constraints. Agricultural yields for crops such as maize and sunflower have fallen by 6‑7 % in July. Heat-related mortality exceeded 10,000 deaths in Germany alone. The halt of Rhine traffic is projected to reduce German GDP by 0.3 percentage points this year, and similar effects are expected in other countries when nuclear capacity is reduced. Allianz estimates that the two‑week June heatwave cut European GDP by 0.3 percentage points and that climate change could shave 5‑7 % off growth in the most exposed economies by 2030. Fiscal impacts include projected reductions in tax revenue of 1.8 % in France, 1.3 % in Italy and 1.3 % in Spain, while corporate profit margins are expected to decline, curbing investment. Researchers say the cumulative effect of extreme events may increase economic losses in subsequent years. The full extent of the damage may become apparent in the years after the events, as prolonged climate stress reshapes production, inflation and fiscal policy.