Europe is blowing up riverbeds as an extreme drought wreaks havoc on its economy
📰 source: cnbc_topnews · 💼 business
europe's extreme drought is forcing desperate measures. romania shut down its sole working nuclear reactor, cooled by the danube, for the first time. the navy blew up rocks in underwater detonations to divert water to the cernavoda plant. low water also threatens hungary's paks plant, which supplies 40% of the country's electricity, and forced serbia to cut hydropower.
on the rhine, water at kaub — a key choke point — fell to 24 centimeters on monday and tuesday, the lowest since records began in 1880. that's far below the critical 78-centimeter navigation threshold. barges must carry lighter loads, and freight costs are 'through the roof,' exacerbating inflation.
the economic hit is measurable. stefan kooths of the kiel institute estimates rhine low water could shave up to 0.2% off german gdp in the third quarter, a loss of 1-2 billion euros. liz saccoccia of the world resources institute warns of blackouts and costly electricity imports, while farmers can't ship crops and cruise ships can't reach budapest. around 30% of southern europe's population lives under permanent water stress.
why it matters: drought-driven river drops threaten europe's energy supply and german growth, hitting trade and inflation.
source: cnbc_topnews
sentiment: -0.60 · impact: 0.70