Business across Europe are facing months of disruption amid concerns that the wildfires which are raging across the continent will not be extinguished for months.

Spanish and French firefighters continue to struggle to contain tens of major wildfires with the French city of Bordeaux and Spanish capital, Madrid under extreme threat with 360,000 of people forced to evacuate their homes and businesses as flames swept through the countryside and towns.

EU officials have said wildfires could still be burning until early November in what threatens to be a record-breaking year for the area of land burned.

It came as new heatwaves gripped the affected areas with temperatures reaching up to 44C in some parts of France, while forecasters in Spain said the heatwave there is expected to continue until Sunday.

French authorities have ordered 4,000 more people to leave tourist sites along the country’s Atlantic coast, expanding what may be France’s largest peacetime evacuation as a vast wildfire west of Bordeaux raged.

Insurance and modelling experts say that at present it remains too difficult to put a figure on the costs of the damage caused by the wildfires however, it will not simply be physical damage.

Firas Saleh, director – Wildfire Models, Moody’s said: “While it is still too early to assess the ultimate economic or insured impact of the France and Spain wildfires, the event highlights several factors that will shape losses beyond direct property damage. Business interruption from large-scale evacuations – including reports that the fires prompted France’s largest evacuation since the Second World War – disruptions to transportation and critical infrastructure, agricultural impacts, tourism-related losses, and contingent effects across supply chains can all contribute materially to the overall economic footprint.

“More broadly, these fires underscore how wildfire is increasingly becoming a regional and interconnected risk, with simultaneous events across multiple countries placing pressure not only on exposed communities but also on emergency response and recovery capacity. The key indicators to watch in the coming weeks will be containment progress, final burned area and structure counts, the duration of business disruption, and claims development.”

Scientists said climate change is having a major impact on the European weather system and with it the risks of catastrophic wildfires.

Professor John Marsham, professor of Atmospheric Science, University of Leeds, said: “Last year we saw a record area burnt by wildfires in the EU. This year on the 22 July the burnt area was close to 2025’s value for the same date – since then we’ve had more fires and  further heat is forecast before the fire season ends.

“Burning fossil fuels increases both extreme heat and drought, increasing the severity of fires as we are seeing across the EU, Canada, the UK and elsewhere. Worryingly, there is growing evidence that climate models may all underestimate the growth in extreme heat and in Europe (due to failing to adequately capture changes in atmospheric circulation and/or effects of drying soils on air temperatures and so circulation), so future increase in fires may well be worse than predicted. It’s vital that people understand that the climate crisis is a ‘one-way street’.

“Once we stop emitting carbon dioxide from burning fossil fuels, we can stabilise but not significantly decrease global temperatures: this is “the coolest year of the rest of our lives”. Finally, without downplaying the current tragic fire situation, it’s important to see these fires as a symptom of the bigger crisis we are all facing. The climate crisis is now threatening entire ecosystems. At 1.5 degrees warming (perhaps 6 years from now) most plants and animals across Europe should hopefully remain in a climate that is suitable for them. Without urgent action, at the end of my kids’ lifetimes, we will have 3 degrees warming and that will no longer be the case.”

French authorities have ordered 4,000 more people to leave tourist sites along the country’s Atlantic coast, expanding what may be France’s largest peacetime evacuation as a vast wildfire west of Bordeaux raged.