The economic toll of Spain's wildfires

Wildfires are wreaking havoc across southern Europe, causing extensive destruction and costing billions of euros. In Spain, the economic impact of these fires has been significant, with the country's GDP affected by around €7.1 billion, or 4.5%. This figure encompasses not just direct firefighting expenses, but also the long-term costs of rebuilding affected areas.

Emilio Vizuete Luciano, an economist at the University of Barcelona, highlights how wildfires can devastate local economies and disrupt trade, particularly affecting tourism - a critical sector for Spain. The country's heavy reliance on tourism means that regions hit by fires suffer severe economic repercussions. Climate economist Sarah Meier from ETH Zurich's University has examined the economic losses caused by wildfires in southern Europe, finding a decline in growth rates by 0.11% to 0.18% in affected regions.

When multiple wildfires strike concurrently, the economic decline can reach up to 4.5%. However, the economic damage extends beyond tourism. The European Environment Agency estimates that in 2017, wildfires burned nearly 990,000 hectares across southern Europe, resulting in losses of nearly €10 billion. Experts warn that the costs escalate when wildfires encroach on larger cities, a scenario that remains rare in southern Europe.

The debate over wildfire prevention spending in Spain has intensified, as investment has declined despite increasing wildfire frequency and severity. Spending on prevention dropped from €364 million in 2009 to €144 million in 2024, while firefighting costs have remained stable. A heated argument surrounds this issue, with some arguing that investing in prevention is far more cost-effective than battling wildfires after they have erupted.

Fighting and extinguishing wildfires in Spain costs approximately €19,000 per hectare, and with nearly 400,000 hectares of forest burning in 2025, the costs could reach around €7.6 billion. However, Maria Inmaculada Marmol Tardaguila of MATS, a social organization advocating for public-sector healthcare workers, cautions that continuing to rely on firefighting crews for forest safety is both environmentally irresponsible and financially reckless.

She emphasizes that the solution lies in proactive measures such as removing combustible material like deadwood from forests before a fire can ignite. Otherwise, Spain risks "burning through its budget at the same rate as its forests."