Europe’s Drought Wipes Out Crops—and €180 Billion

The drought scorching much of Europe this summer is devastating harvests, from potatoes in the Netherlands to corn in Bosnia. Despite farmers’ best efforts to adapt, the damage is severe. Triodos, a Dutch bank that focuses on sustainable finance, warns the losses could shrink the European Union’s gross domestic product by 1 percent in 2026. That equals roughly €180 billion. The warning highlights how climate extremes are no longer a distant threat but a direct hit to food supply and economic output. Farmers across the continent are struggling as soil dries up and irrigation limits bite. For now, the full impact on food prices and trade remains unclear. But the bank’s estimate signals a major financial blow, with no quick fix in sight.