Floods and growth gloom combine to dampen French spirits ahead of Euro 2016

France expected to be spending this week polishing its football boots and sprucing up its stadiums ahead of Friday’s Euro 2016 kick-off, but after a week of heavy flooding, Gallic woes grew today when the central bank cut the country’s economic growth forecast.

The Bank of France, which had expected GDP to rise by 0.3% in the second quarter, admitted that GDP will inch up only 0.2% between April and June. In the first three months of the year, growth was 0.5%.

Insurance estimates for the cost of clearing up France’s major flooding, which has killed two people and forced thousands to evacuate their homes, are now rising.

“We estimate that it would cost insurers up to €800 million [£620 million], while the total cost of damages would be around €1 to €1.2 billion,” said Yorik Baunay, of natural catastrophe consultancy firm Ubyrisk Consultants.

France’s biggest insurer, Covea, is the most exposed to losses, alongside its rival mutual insurers Macif and Matmut.

Listed insurers like Axa and Allianz are expected to escape lightly. Much of the reinsurance risk is expected to pass through the Lloyd’s of London market.