Between 1998 and 2004, Europe suffered more than 100 major flooding events, including the catastrophic floods along the Danube and Elbe rivers in the summer of 2002. In the wake of these events, the European Commission has embarked on the development of a European policy on flood risk management, resulting in a proposal for a floods Directive that was tabled in January 2006. This paper by Thomas Dworak and Benjamin Görlach tracks the development of the European approach to flood risk management and discusses future options for a European policy on floods.

Floods have caused substantial economic damage in recent years in Germany and elsewhere in Europe. The costs of the 2002 Elbe flood alone exceeded 10 billion Euro. Thirty experts from science and public administration gathered at the Federal Environment Agency in Berlin on 10 May 2005 to discuss the role of economic instruments for flood management and the economic assessment of flood management strategies. In his lecture, Benjamin Görlach presented some selected examples of flood management in Europe and discussed the use of economic appraisal tools in the different countries.