Europe's drought tightens grip on trade and power, prompting risky fixes

A severe European drought has pushed Rhine water levels to record lows, threatening river shipping, raising freight costs and forcing power plants to reduce output. The Danube and other waterways face similar strain, prompting measures like underwater blasting to improve flow. Economists warn Rhine disruptions could shave German Q3 growth by roughly 0.1–0.2 percentage points and ripple through energy security and inflation as firms reroute cargo by rail or road.