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Greece battles wildfires, Hungary shuts nuclear power plant due to drought - Headlines news and analysis from Global Banking & Finance Review
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Greece battles wildfires, Hungary shuts nuclear power plant due to drought

Published by Global Banking & Finance Review

Posted on August 2, 2026

4 min read

· Last updated: August 2, 2026

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Wildfires and Drought upend Greece, Hungary: Energy and Climate at Risk in Europe

Europe’s Summer of Wildfires and Drought: Impacts on Energy and Climate

Wildfires Ravage Greece

AGIOS KONSTANTINOS, Greece, Aug 2 (Reuters) - Greek firefighters battled on Sunday to control a huge wildfire that has destroyed over 100 homes northwest of Athens, while a fresh blaze forced evacuations on the popular tourist island of Kefalonia.

Europe has been ravaged by wildfires this summer after a period of record-breaking heatwaves and little rain - conditions that scientists say have been exacerbated by climate change.

Destructive blazes in France and Spain showed signs of easing over the weekend, but several wildfires have broken out in Greece after a period of relative calm there.

Firefighting Efforts and Local Impact

Gale-force winds that fuelled the fire around Porto Germeno on the Gulf of Corinth 60 km (40 miles) northwest of Athens have subsided, but flames crossed a mountain to the south and reached the settlement of Veniza and a military firing range, activating unexploded ordnance.

Nearly 500 Greek firefighters equipped with vehicles, heavy machinery and firefighting aircraft have been deployed, reinforced by France and Romania.

In the village of Agios Konstantinos, residents were doing their best to halt the spread of the blaze.

"The fire has been burning since last night, it is certain that they cannot have forces everywhere. We as residents are doing everything we can,” said Tasos Tzempelikos, 61, who along with his son was pouring water on the fire.

Greek daily Protothema reported that a major effort was under way to prevent the fire from Veniza from reaching the nearby coastal town of Megara. It said more than 10,000 hectares of land had likely been destroyed by the fire so far.

Overnight, several settlements on the Ionian island of Kefalonia were evacuated after a fire broke out in the Pastra area in the south.

Wildfire Situation in France and Spain

In France, wildfires in the Gironde and Var departments showed signs of easing. Authorities reported only minor flare-ups in the southwestern Gironde area and said the blaze in the southeastern Var department had not spread overnight.

In central Spain, wildfires that ripped through tens of thousands of hectares over the past week were mostly under control, though firefighters were dealing with re-ignitions in some areas.

In the western province of Caceres, a forest blaze erupted on Saturday, prompting the evacuation of around 800 people. Those residents were allowed to return on Sunday but remain confined to their homes as the fire remain active.

Drought and Water Crisis in Central Europe

Other European countries are struggling with drought and receding water levels in major rivers, including the Rhine and the Danube, which recorded its lowest-ever water levels in Hungary, Serbia and Romania.

Hungary’s Energy Emergency

Hungary faces a critical five days, Prime Minister Peter Magyar said on Sunday, as the drying out of the Danube forced the country's sole nuclear power plant to shut for the first time in over four decades, with a new heatwave looming.

Economic and Social Impacts

Falls in water levels amid a lack of rain have also disrupted shipping and tourism in Hungary and triggered water-use restrictions in more than 100 cities and villages.

Serbia’s Hydropower Struggles

Danube levels in Serbia fell to their lowest since 1985, cutting the daily output of the country's biggest hydropower plant to only 20%, the country's energy minister said on Sunday.

(Reporting by Aleksandar Vasovic in Belgrade, Dominique Patton in Paris, Manon Cruz and Fatos Bytyci in Var, Gergely Szakacs in Budapest, Louisa Gouliamaki, Angelos Tsatsis, Vania Turner in Greece, Andrey Khalip in Madrid; Writing by Aleksandar Vasovic; Editing by Christina Fincher)

Key Takeaways

  • Wildfires in Greece have destroyed over 100 homes near Agios Konstantinos and prompted evacuations on Kefalonia, amid Europe’s scorching, drought‑ridden summer exacerbated by climate change.
  • In France and Spain, fires still persist despite easing in some areas; the continent has seen unprecedented wildfire activity tied to consecutive heatwaves and dry conditions.
  • Hungary’s Paks nuclear power plant has been fully shut down—the first such shutdown in 44 years—due to record‑low Danube levels impairing its cooling systems, raising energy security concerns.

Frequently Asked Questions

What areas in Greece have been impacted by wildfires?
Wildfires destroyed over 100 homes northwest of Athens, reached the settlements of Veniza and Porto Germeno, and forced evacuations on the island of Kefalonia.
How has drought affected Hungary's energy supply?
Drought and record low water in the Danube forced Hungary’s only nuclear power plant to temporarily shut down for the first time in over four decades.
What are the broader impacts of drought in Europe?
Drought has resulted in receding river water levels, disrupted shipping and tourism, and triggered water restrictions across more than 100 cities and villages.
Which other European countries have faced wildfire or drought emergencies?
France and Spain faced destructive wildfires, while Serbia and Romania reported historic low river water levels similar to Hungary.
What efforts are being made to control the wildfires in Greece?
Nearly 500 firefighters, reinforced by units from France and Romania, are using vehicles, heavy machinery, and aircraft to combat the fires.

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