Annual fragmentation cost
€8B/yr
COST OF NON-EUROPE
What Does Europe Lose Every Year to Fragmentation?
€260B+
in annual fragmentation costs across 5 policy domains
Toggle between Fragmented and Federal scenarios for any EU policy to see the exact cost of non-Europe.
27 Separate National Policies
STATUS QUO
Green Hydrogen Transition
€8B lost every year
27 nations each enacting their own national version
Hydrogen projects duplicated across EU
27×
Cost premium vs. unified rollout
+340%
Cross-border hydrogen corridors
0
EU energy independence progress
12%
EU vs. US vs. China: Market Coherence
🇪🇺EU (Fragmented)
38/100🇺🇸United States
91/100🇨🇳China
87/100Fragmentation Cost Formula (Cecchini)
CoNE = (C_compliance × N_states) + C_friction + C_scale + C_competitive
complianceRegulatory compliance cost per state
frictionCross-border friction and trade barriers
scaleLost economies of scale
competitiveCompetitive disadvantage vs. unified blocs
scaleGainEconomies of scale from unified market
bargainingCollective bargaining power multiplier
networkNetwork effects from interconnection
speedImplementation speed advantage
All Policies — Annual Fragmentation Cost
| Policy | Theme | Annual Loss | Federal Gain |
|---|---|---|---|
| Green Hydrogen Transition | Energy | €8B lost every year | €120B unlocked |
| Capital Markets Union | Economy | €100B lost every year | €500B+ unlocked |
| EU AI Regulation | Technology | €12B lost every year | €200B AI market |
| Carbon Border Adjustment | Environment | €45B lost every year | €110B/yr unlocked |
| European Minimum Wage | Inequalities | €95B lost every year | 40M workers lifted |
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