I have been hosting in Europe for over 2 years now. My preferred host isp is German. However after a short holiday of 1 year it has been nothing but nightmare. Don't get me wrong. I am not slapping hosting providers for all of europe just because of one country and one ISP. I say Euro is because they have laws and policies that change very frequently when it comes to cyberlaws and is usually against the ISP and against Freedom in general. If you think US or China is bad , Europe is getting much worse.
Here is what's bothering me. I got slapped for spam posts on the massive bigboards like site I run where spammer posted comments about some local person (no one of consequence mind you) and used her name in the post. The lady was able to threaten my ISP and got my site shutdown overnight. I had a cluster of servers and paid a lot of setup fees. All went to drain hole. I have noticed Netherlands is no longer favorable either. Any tom dick and harry can get your site shutdown. I don't know the real reason behind chasing your not-so-unqiue name as libel on the internet but they are crazy and they do it. Also since you do not reside there you have no say. Get lost. I would recommend against setting up anything in Euro zone.
Italy is also very bad, their politics prohibits posting anything bad about a political person online (WTF?) well they routinely get your site blocked by search engines. If you host in US they cant do shit.
The problem is you can't even talk to your ISP and explain or discuss matters with them. Language is a big issue. THey can write english (translation software perhaps) but they cannot at all comprehend anything by reading or talking.
It seems to me we are all better of hosting in US or your own country. Europe is still unstable and gets influenced by US easily, pointing fingers at them (talk about US and their asshole way of doing things). It seems the recent string of lawsuits against P2P etc has everyone on the edge and they simply slam the services down without a fight. Europe hosting is utterly useless even for the price they offer. Unless you are just dickin around and want a P2P server to download torrents or backup files. Those are ok. Serious stuff, stay away.
Future of Europe hosting looks bleak to me.