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The "European Fiasco" as it was dubbed in the United States, was the series of events that unfolded in the former E.U. in the summer of 2035 including the dissolution of NATO, collapse of the European Economy and the deterioration of relations between fellow European countries, propelling the continent into a deadly series of conflicts known as the "European Wars".
This event is perceived by many as the end of "American imperialism" in Europe, however the U.S. continued to bolster pro-American regimes and kept a strong hold over part of the continent in the form of the Paris Group, a EU-like alliance between France, the Benelux Countries, Germany, Italy (northern Italy to be exact) and Austria.
Eastern Europe became a string of pro-Union State nations in a polish-led bloc known as the Intermarium. The Intermarium joined the Eurasian Customs Union and the member states became de facto part of the Eastern Powers.