No.What the US is doing is absolutely unconscionable; it is making an awful lot of people’s lives very difficult for a very small amount of money. Compliance costs of FATCA alone are estimated to be well above the amount of taxes it will collect. Citizenship means different things to different people - to the US, it is a way to make money.There have been persistent attempts to legislate new punishments for people who renounce US citizenship. So far, they haven’t been successful. But the fact that the state department discourages duel-citizenship doesn’t necessarily mean the US won’t react with outrage in the future if you solve your duel-citizenship problem by renouncing US citizenship. In many American’s minds, being American isn’t just a nationality; it’s more like belong to a cult, and the biggest crime you can commit is apostasy. Just read some comments here on Quora.So it might be tempting for European Union countries (or any other country, for that matter) to fight back, and impose extraterritorial taxation, FATCA-like reporting, etc., on Europeans living in the US. The US, of course, would howl with outrage that anyone would dare to do this, since only the US has the right to bully other countries.Just imagine, people who might not have even realised they were Italian, or Polish, or Estonian, might find that they are liable for fines equal to 50% of their net worth per year for failure to report their American bank accounts, even if no taxes are due. They might find they are unable to open bank accounts at all, or find jobs in the financial sector, since a US bank won’t want to hire a German employee if it means they have to comply with all the complicated rules (with incredibly severe fines for non-compliance) of German extraterritorial tax reporting legislation. People with no connection to any European country at all may find they have to fill out forms in Finnish language, complete with perjury penalties under Finnish law, when opening bank accounts in Nebraska, because they have to prove to the bank that they are not Finnish and therefore not subject to Finnish banking/taxation regulation.It might be comforting at an emotional level to fight back in this way, and watch Americans jump up and down with hypocritical indignation, maybe demanding that the US invade these European countries and overthrow their governments for having the temerity to do to the US what the US is doing to them. However, it would be wrong. It is rather like the view that if you can’t build a church in Mecca, then you shouldn’t be able to build a mosque in New York. The United States should not lower its standards of religious freedom to those of Saudi Arabia, and the European Union should not lower its standards of civil rights and personal freedom to those of the US. Because the US decides to punish US citizens for their crime of living outside the US, does not mean the EU should decide to punish EU citizens for living outside the EU. We need to be better than the US, not to sink to its level.