EU has much more strict rules. The airline must not only refund you, but compensate you too if the flight was cancelled less than 14 days before departure and the cancellation wasn't due to extraordinary circumstances. I.e. heavy rain and storm or a volcano eruption the airline could not have done anything to complete the flight in spite of. Stuff like technical problems or a strike [1] is generally 100% on the airline.
The big problem with the EU regulations is the lack of consequences when airlines don't follow them. They can just refuse or drag their feet and the worst thing that can happen is a court ordering them to follow the rules they should have followed in the first place. Some rules about treble compensation (or a big compensation if one wasn't due in the first place) if they haven't refunded/paid compensation within, say, 60 days from first contacted would probably help a lot with cutting through the bullshit.
What about delayed flights? My international Lufthansa flight arrived late enough to make me miss my next flight (Air Canada - who then compensated me with a $300 voucher and meal coupon).
What about airlines in other countries? Like Air Canada from Canada, and Lufthansa from Germany?