Brussels - SABA:
The European Central Bank (ECB) has warned that Eurozone economies could suffer devastating losses from drought conditions potentially wiping out 15% of the region's economic output.
An ECB research paper revealed €1.3 trillion in extended loans have been allocated to high-risk sectors facing potential water shortages, particularly agriculture, manufacturing, mining, and construction.
The Financial Times reported this warning underscores the ECB's intensified focus on climate-related financial risks, despite growing political opposition to environmental policies and clean energy initiatives, as well as mounting U.S. pressure to relax such measures.