This Master’s thesis examines the relationship between public debt and climate-related natural disasters in Southern Europe, focusing on Greece, Italy, Spain, and Portugal. It analyzes how increased frequency and severity of climate events strain public finances, leading to higher debt levels and reduced economic stability. The research synthesizes existing literature and employs rigorous scenario analysis to project future fiscal outcomes, highlighting the unique vulnerabilities of these countries. The thesis concludes with policy recommendations to enhance fiscal resilience, advocating for tailored fiscal rules, increased investment in climate adaptation and mitigation, and the establishment of fiscal buffers to ensure long-term economic stability in the face of climate change.