Europe has lost 606,327 hectares to wildfire so far this year, about two and a half times the 20-year average for this point in the year, according to the  European Forest Fire Information System's own count, as drought and record heat intensify pressure on agriculture, energy systems and water supplies across the continent. Southeast Europe is at the sharp end of the crisis, with firefighters battling active blazes in counties across the region.

The fires are the most visible sign of a wider problem. Rivers are at exceptionally low levels, hydropower output is vulnerable, nuclear plants are facing constraints on cooling water and farmers are heading into harvests after a summer of heat and drought.

In just he last few days, Croatian firefighters have battled blazes that threatened the coastal town of Omiš as well as spreading across the Pelješac peninsula. The fires resulted in one death, at least 36 injuries and the evacuations of around 1,000 residents and tourists, according to government statements.

Croatia also sent firefighting helicopters to neighbouring Bosnia & Herzegovina, where a fire on Mount Risovac in the municipality of Bosansko Grahovo created a front of almost 15 km. Difficult terrain, a lack of forest roads, strong winds and thick smoke hampered efforts to contain the fire, just one of several wildfires across the country.

Albania's National Civil Protection Agency recorded 25 fires in the 24 hours to August 19. About 311 hectares had been affected. Around 350 firefighters and 26 vehicles were deployed, supported by 140 armed forces personnel, three helicopters and two Air Tractors.

In North Macedonia, a fire near Caniste in the Prilep area was moving towards Kruzevica on August 19, with about 30 volunteers working to slow its advance. Stojance Angelov, head of the Directorate for Protection and Rescue, said the length of the fire front meant it could not realistically be extinguished quickly.

The scale of this year's fire season puts the individual emergencies into a wider European context.

By August 18, 606,327 hectares had burned in 1,736 fires across Europe, according to the European Forest Fire Information System. The 2006-2025 average for the same date was 243,189 hectares.

That makes 2026 the second-worst year on record, behind 2025, when 957,510 hectares had burned. The two worst fire seasons in the record have therefore come consecutively.

Water under pressure

Extremely low water levels on the Danube have affected power generation and transport along the length of the river in Central and Southeast Europe.

Low water levels have reduced the amount of cargo that barges can carry and affected irrigation intakes along the river basin. The Danube is also an important source of cooling water for power plants, meaning low levels can create direct risks for electricity generation.

Reactors in Hungary and Romania have already faced interruptions linked to the drought, while Hungary launched an emergency water-control project to maintain sufficient flows for the Paks nuclear power plant.

The problem is also acute for countries that rely heavily on hydropower. Albania's electricity system has traditionally benefited from abundant hydropower resources, helping to shield the economy from external energy shocks. But the same lack of rainfall that is worsening fire conditions is putting pressure on reservoirs and future generation.

The retreating waters have also exposed remnants of the past, including scuttled German warships near Prahovo in Serbia, the wreck of Budapest's Franz Joseph bridge, the foundations of a Roman crossing near Gigen in Bulgaria and Ice Age mammoth bones near Ruse.

Economic cost rises

Scientists say the conditions are consistent with a broader shift in Europe's climate. The IPCC has Europe's heat map turning red as heatwaves become annual rather than exceptional, and the continent is warming faster than any other. This is the pattern our own disaster season coverage has been mapping since 2022.

Allianz Trade estimates that cumulative GDP losses in the most exposed European economies could reach 5-7% by 2030. It estimates losses of $240bn for France, $147bn for Italy, $131bn for Germany and $120bn for Spain.

Labour productivity falls by about 3% for every additional degree above 30 degrees Celsius, while energy demand rises by about 1.2%, according to the analysis. That creates a damaging combination for businesses: workers are less productive as temperatures rise while demand for cooling increases.

European governments have increasingly recognised the need for climate adaptation. Many countries have adaptation strategies, yet governments often rely on emergency spending after disasters rather than investing sufficiently in measures designed to prevent or limit damage. That is a poor fit for a region where cooling is becoming existential rather than a comfort, and where heat mortality is already climbing. For Southeast Europe, where governments have already been increasing disaster-response allocations, the challenge is particularly acute.

Food prices next

Agriculture is one of the main channels through which drought and extreme heat can spread into the wider economy. European harvests have been affected by the exceptionally hot summer, raising concerns about yields and commodity prices.

Capital Economics expects higher global agricultural prices to begin pushing headline inflation higher again in Central and Eastern Europe in the coming months, reversing some of the food-price declines that have supported household purchasing power.

Input costs are also a concern. Fertiliser prices have risen following the new Iran war, adding another source of pressure for farmers.

The impact of climate extremes is not new to the region. In 2023, heatwaves followed by severe storms damaged maize, sunflower and fruit crops across Serbia, Romania and Bulgaria, after drought had already reduced yields. The sequence of drought, fire, storms and crop losses is becoming less of an exceptional agricultural shock and more of a recurring pattern.

The deterioration can be seen by comparing recent summers. In 2022, firefighters battled wildfires across Southeast Europe as a heatwave moved east, while Albania's first major fire of that year burned for days on Sazan Island.

In 2026 Hungary recorded its hottest day ever, Europe's June heatwave was the most severe on record, and a Super El Nino arrived early. 

The result is a growing chain of interconnected risks. Wildfires consume forests and threaten homes and infrastructure. Drought reduces river flows, restricts transport and irrigation and can threaten power generation. Heat reduces labour productivity while increasing demand for electricity. Poor harvests raise food prices, while farmers face higher input costs.

The immediate task remains putting out the fires. The longer-term challenge is adapting economies, infrastructure and agriculture to conditions that increasingly look less like temporary emergencies and more like the operating environment of the future.