European fusion startups are demanding EU action before competitors widen their lead. Proxima Fusion and the Fusion Industry Association published an open letter warning Europe risks falling behind the US, China, Japan and Canada in commercialising fusion. Proxima Fusion, which has raised €185mn, wants a regulatory framework separate from nuclear fission so startups can move faster.

The funding gap is stark. The US attracted over 70 per cent of global private fusion capital last year — $2.6bn in deals versus Europe's $600mn. China has invested at least $6.5bn since 2022. Even the UK's £2.5bn and Germany's €2bn pledges trail rival programs. Andrew Holland of the Fusion Industry Association said the sector isn't experiencing a bubble. "Nobody has enough money."

Policy barriers compound the problem. The EU lacks a dedicated fusion regulatory framework, so projects fall under national nuclear rules — unlike the UK approach. Commonwealth Fusion Systems, which raised roughly $3bn, applied to connect to the US grid, targeting electricity supply by the early 2030s. The interconnection review could take six years.