Britain solves this with fuses inside appliance plugs.
The continental European system doesn't really solve it, as far as I know, so you have thicker wires on low power appliances than you would in the USA.
The US also has fused plugs but their are not widely used for some reason. I see them mostly on Christmas lights, but I have also seen it on some small home electronics like a window fan and air purifier.
The continental European system doesn't really solve it, as far as I know, so you have thicker wires on low power appliances than you would in the USA.