Europe's worsening drought is disrupting transport, agriculture and energy production as prolonged rainfall shortages and repeated heat waves push river levels to critical lows across the continent. Triodos Bank estimates drought and extreme heat could reduce EU economic output by around 1% in 2026, or roughly €180 billion, erasing much of the European Commission's projected 1.1% growth for the year. The European Commission's Joint Research Centre said drought conditions remained stable and critical across most of Europe in July and deteriorated in central-western areas including France, southern Germany, Hungary, Austria, the Czech Republic and Slovakia. Low water on the Rhine is severely restricting freight traffic in Germany and eastern France, while northern Italy's Po basin is under its highest water severity classification and the Danube has fallen to exceptionally low levels in Hungary and Romania. The impacts are spreading from logistics into fuel supply, farming and electricity. Near Kaub on the Rhine, vessels can no longer pass with normal loads, effectively splitting the waterway for freight operators. In France's Grand Est region, 14% of filling stations had run out of at least one type of fuel as of Friday. In Italy's Lomellina rice-growing area, irrigation water is being rationed in shifts and potential agricultural losses are estimated at more than €100 million. In Hungary, low Danube levels have threatened cooling operations at the Paks nuclear power plant, which supplies around half of the country's electricity. Scientists cited by World Weather Attribution said the drought reflects a compound crisis of persistent rainfall deficits and extreme heat that accelerates moisture loss from soils, rivers and vegetation. They found soil-moisture deficits like those recorded in 2026 are now around five times more likely in western Europe and 11 times more likely in eastern Europe than in a climate 1.4C cooler.