Spain is currently the biggest victim, drinking water is rationed there. But there are also problems in Portugal and Italy as the water level in the rivers is at its lowest. Even in Scandinavia there is a drought, while spring has just begun. According to Wijffelaars, it is difficult to determine how serious the economic damage might be.
Food prices
‘As agriculture is affected, there is less production and so the price goes up. This also means that those who can still produce can benefit,’ explains the senior economist. “At the same time it’s sad if so much production is lost, at least the farmers in Spain will have to cope with that.”
“Last year there was less electricity generation from hydropower because there was little rainfall”
The drought problem is not new. One year there is extreme rainfall and the next year it is exceptionally dry. Both situations have an impact on food prices, Wijffelaars knows. But it’s not just about food production – electricity generation, for example, can also be affected by the weather. “Last year, for example, we saw that electricity generation from hydropower was lower in some months,” says Wijfelaars.
Adverse weather conditions
According to the senior economist, warnings about harsher weather conditions such as excessive rainfall or extreme drought have been issued for years. They are the effects of climate change. As a result, not only are cruise ships and gondolas stranded in Venice because the water level is too low, but also ships carrying coal on the Rhine may be less heavily loaded than last year. Wijffelaars says the coming months should show how much rain will fall: “It’s still too early to say we’ll end up in the same situation as last year.”
But Wijffelaars also notes that it’s certainly something to watch. “You have to deal with this. If we are to avoid losing control, we will need to focus on fighting global warming. As far as I’m concerned, that’s beyond doubt.”