Hungary is bracing for electricity rationing as the Danube’s record‑low water forces the 2 GW Paks nuclear plant to shut down. The plant supplies up to 40 % of the country’s output and relies on river water for cooling, with no backup supply.

Prime Minister Péter Magyar warned that the next five days would be the most critical, saying the plant would stop generating electricity on Sunday amid temperatures reaching 40 °C. He has issued a decree allowing cuts to large industrial consumers if the grid is under pressure, and urged households and businesses to limit air‑conditioning and EV charging.

The government has introduced measures such as halting freight rail traffic during peak hours, ordering trains to slow down, and switching off decorative lights on public buildings.

Solar capacity of about 8 GW has helped cover up to 80 % of daytime demand, but once the sun sets, fossil‑fuel plants and imports must fill the gap. The drought‑related strain could push the already‑high budget deficit toward 8 % of GDP, tightening the central bank’s ability to cut rates. Other European neighbours, like Romania’s Cernavodă and Germany’s Rhine corridor, face similar disruptions, amplifying regional pressure. The combined heat, drought and power shortages are expected to halt production, weaken agriculture and add inflationary pressure.