Germany hit by more floods

Parts of Germany hit hard by last month’s Europe-wide flooding were back under water today after torrential rainstorms deluged the east of the country.

The overnight downpour flooded houses and roads in Dresden, Chemnitz and other parts of the east German state of Saxony, where thousands of people are still cleaning up after the overflowing Elbe River and its tributaries caused widespread damage.

Traffic jams built up yesterday evening in the Saxon town of Floeha after authorities warned that the rain could send a floodwave through the town, police said. The danger did not materialise. Several roads in Saxony and Baden-Wuerttemberg states were blocked by landslides.

Heavy rain also caused flooding in parts of Poland and Switzerland, where three people died in a house buried by a landslide.

But with warm, dry weather expected over much of Europe in the days to come, leaders are focused on how to repair damage estimated at more than €20bn with most of the burden falling on Germany.

Germany and Austria have said they will delay planned tax cuts to fund relief for the victims, and European Union foreign ministers meeting today in Denmark approved the establishment of a European disaster fund.

EU applicants Czech Republic and Slovakia affected by the flooding will also be able to draw on the fund, which is to have an initial kitty of €500m.

The German government has begun releasing funds from a hastily assembled package worth about €10bn also funded by a one-year rise in corporation tax to rebuild infrastructure and help residents and businesses back onto their feet.

The German Chamber of Industry and Commerce estimated yesterday that 2,500 businesses were completely destroyed and as many as 18,000 more were damaged by the floodwaters.

The Finance Ministry denied reports that the cost of the flooding and Germany’s lame economy will see the government overstep borrowing limits designed to guard against inflation and protect the value of the euro.