June 2026 has become the hottest June ever recorded in Germany, with temperatures soaring up to 40 degrees Celsius. This extreme heat is not only affecting people and nature but also the economy, as productivity drops and cooling costs rise.
Air conditioning remains rare in German households, with only 6% having it, compared to 50% of office buildings. According to economist Katharina Utermöhl from Allianz, buildings in northern countries are designed to retain heat for cold winters, making them ill-suited for heatwaves.
Temperatures above 30°C significantly strain the human body: concentration declines, perspiration increases, and the cardiovascular system is affected. Utermöhl states that productivity drops by 3% per degree above 30°C, while energy costs rise by 1.2% per degree. Workers become slower, mistakes increase, and machines overheat.
Outdoor workers in construction, agriculture, and delivery services are most affected. The German Federal Ministry of Labour reports that sick leave rises by 3.5% on days above 30°C and up to 6% during prolonged heatwaves.
The Allianz study warns that total economic losses between 2026 and 2030 could amount to around $131 billion (€120 billion), with GDP potentially falling by up to 3%. Declining returns may dampen investment, further undermining productivity and competitiveness.
Germany ranks in the middle for potential economic damage from climate change; France, Italy, and Spain are worse off. WHO Regional Director for Europe Hans Henri Kluge stated in Berlin: "Europe is warming faster than any other continent — and we are paying for it with human lives." Over 200,000 people in Europe have died from heat in the past four years.
Germany's "Workplace Ordinance" requires employers to take measures at 26°C, with protective steps mandatory at 30°C, and workspaces deemed unsuitable above 35°C. The opposition Left Party is calling for stricter laws, including drinks, sun protection, and extra breaks for indoor workers, and a "climate short-time work allowance" for outdoor workers.
Utermöhl urges long-term thinking: "Germany must stop treating heat as a summer problem — it is a permanent task of economic policy." She proposes tax incentives for heat-adapted buildings, green roofs, and infrastructure upgrades. At 38°C, parts of infrastructure fail, requiring significant government investment.
Source: www.dw.com