economy
Europe is blowing up riverbeds as an extreme drought wreaks havoc on its economy
Severe drought is disrupting energy and freight across Europe as low Rhine and Danube levels raise risks for supply chains and economic growth.
TL;DR
- Extremely low water levels on the Rhine and Danube are disrupting energy generation, freight, and river transport in Europe.
- Nuclear reactors in Romania, Hungary, and France, as well as hydropower in Serbia, have reduced generation due to insufficient water for cooling or turbines.
- The Rhine River in Germany has reached its lowest levels in nearly 150 years, impacting navigation and increasing freight costs.
- Authorities in Romania have conducted underwater demolitions to improve water flow to the Cernavoda Nuclear Power Plant.
- The drought is expected to dampen German GDP by up to 0.2% in the third quarter, with estimated value-added losses between €1-2 billion.
- Companies are preparing for recurring low water levels by stocking inventories or diverting transport to rail or road, though freight rates are increasing.