Water scarcity threatens European economic growth

Water scarcity caused by extreme weather and prolonged droughts is increasingly impacting economic growth across Europe. The European Central Bank reports that droughts currently cause approximately 9 billion euros in annual damages to the continent, with surface water scarcity potentially threatening 15% of the eurozone's total economic output.

In Germany, experts have lowered economic growth forecasts as water shortages affect production and vital transport routes. Low water levels in major rivers like the Rhine, Danube, and Elbe are significant drivers of this trend. On the Rhine, barge carrying capacity has dropped to just one-fifth of normal levels, causing raw material shipping costs from Rotterdam to Karlsruhe to more than triple, rising from 45 euros per ton to between 150 and 160 euros.

Regional scarcity is also affecting industrial expansion. In Brandenburg, companies such as Red Bull and Rauch plan to expand production despite the region becoming one of Germany's most arid areas. Experts note that existing water usage contracts, some dating back to the 1990s, often fail to account for the modern realities of climate change and acute water shortages.