Blistering heat threatens a European economy that teeters on the brink

There’s record inflation, made worse by Russia’s war in Ukraine. A weak euro is making it more expensive for businesses to import necessary goods. Italy, the bloc’s third-biggest economy, is embroiled in a political crisis following the ouster of the country’s prime minister.But Brzeski is also keeping a close eye on extreme weather. A summer of dryness and blistering heat, exacerbated by climate change, is compounding headaches for businesses across Europe, weighing on economic output at a moment when every bit counts.

“This adds to the worries,” Brzeski said.

Water levels along Germany’s Rhine river, which is crucial for transporting chemicals, coal and grain, are so low that shipping has been disrupted, threatening to further scramble supply chains. Warm water temperatures in France are impeding the operation of some nuclear power plants amid other maintenance issues. And in northern Italy, farmers are muddling through the worst drought in 70 years,…

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