European wildfires cause over €3 billion in damages across five EU nations

wildfires economic cost Europe restoration insurance

A Financial Times analysis estimates that wildfires and heatwaves in 2026 have already generated about €3.1 billion in restoration costs for the five most affected EU countries – France, Spain, Portugal, Greece and Romania. This figure surpasses the European Commission’s average annual forest‑fire cost of €2.5 billion for the whole EU.

Roughly half a million hectares have burned, prompting production stoppages at major aerospace firms in France’s Gironde region, including Safran, Dassault Aviation and ArianeGroup. The fires directly impacted at least 40,000 businesses, with around 19,500 companies forced to close and between 120,000 and 150,000 employees placed on reduced work schedules. Tourism, especially in wine‑producing areas, has suffered, and insurance premiums are expected to rise, with some properties potentially becoming uninsurable.

A separate scientific study shows that the number of days with high forest‑fire risk in southern Europe has doubled since 1981, although the total number of fires in the last decade has been lower than in the 1980s, likely due to improved fire‑management practices. Experts warn that accumulated fuel and climate change could still trigger larger, harder‑to‑contain megafires in the future.

Entities: ArianeGroup · Dassault Aviation · European Commission · European Union · Financial Times · Safran

Claims

What the coverage asserts, and how well corroborated each claim is across sources.

[○ 1 SOURCE] The number of days with high forest‑fire risk in southern Europe has doubled since 1981. (Study published in Scientific Reports)
[○ 1 SOURCE] Insurance premiums are expected to rise and some properties may become uninsurable due to the fires. (Financial Times analysis)
[○ 1 SOURCE] Approximately 500,000 hectares have burned in the affected European fire season. (Financial Times analysis)
[● 2 SOURCES] The €3.1 billion estimate exceeds the EU average annual forest‑fire cost of €2.5 billion calculated by the European Commission. (Financial Times analysis referencing European Commission data)
[● 2 SOURCES] In France's Gironde region, companies Safran, Dassault Aviation and ArianeGroup halted production and evacuated staff due to fires. (Financial Times analysis)
[● 3 SOURCES] Wildfires and heatwaves in 2026 have caused at least €3.1 billion in restoration costs in France, Spain, Portugal, Greece and Romania. (Financial Times analysis)
[○ 1 SOURCE] Despite increased risk, the total number of forest fires in southern Europe has been lower in the last decade compared to the 1980s. (Study published in Scientific Reports)
[○ 1 SOURCE] The fires directly affected at least 40,000 businesses, with about 19,500 companies closed and 120,000‑150,000 employees on reduced work. (Financial Times analysis)