That cuts both ways. As an US citizen, I have no reason to believe my data is safe, say, in Germany, and certainly not in France who have been caught using their spy agencies to spy on US companies before. What enforceable mechanism has the EU provided US citizens regarding data safety? How can I, as a US Citizen, audit what access an EU government has had to my data?

So, yes, Balkanization is the only likely outcome, without a one-world-government and one-world-policing.