Austria is grappling with the aftermath of severe floods that have caused extensive damage, estimated at up to 1.5 billion euros.

The floods have not only devastated infrastructure and homes but are also expected to increase black market activities.

Economist Friedrich Schneider predicts a rise in unreported work by 250 million euros over the next six months.

Insurance companies are facing potential claims of up to 700 million euros, with some estimates suggesting damages could exceed a billion euros.

The Austrian government and insurance firms are working to expedite damage assessments and provide financial aid to affected residents.

However, the effectiveness of these measures will depend on the timely distribution of EU-promised aid, which could mitigate the surge in black market activities.