I can't speak for all of Europe, but Germany avoids having university degrees becoming a mere piece of paper useful only for signaling by having alternate paths to a fulfilling career.
You can easily enroll in any university you like, but can't advance in that major if held back in the rather difficult weed-out classes.
If I had to give a single root cause, it would be how we vote (the US system leads to a far stronger polarized two party system than Europe has).
The result was that literaly thousands of bullshit private universities were created not to educate you, but to help you avoid military. This also created additional income source for university professors, who earn pretty shitty salary in Poland.
Now, obligatory military service was abolished few years ago, but the trend of everyone going to college after high school remained.
I was born and lived in an "university town", and I remember military recruiters in my town were absolutely expecting that everyone's going to university, and they defaulted to giving people the status of "not suitable for service during peace time" for any reason whatsoever. I heard that in smaller towns, on the other hand, it was much more difficult to avoid getting pushed into service.
I don't know how prevalent this is in Europe.
But it's a general economic fact that people don't value what they get for free. They need to have "skin in the game", so to speak.
If you want evidence, look at how people treat rental cars vs their own. Or how they treat those ride share bikes. Or how they treat public bathrooms. Etc.
I personally treat rental cars, bikes and public bathrooms the same as anyone else. I don’t trash them but don’t clean them meticulously. I still value their presence.
Once a group I was in was staying in a hotel. We were all heading out to dinner, and one person came out of her room, leaving the light on. I asked why she didn't turn out the light. She replied: "why should I? I'm not paying the electric bill."
Apparently that's pretty common, as most hotel rooms I stay in these days require you to insert your room key into a device that enables turning on the lights, so they turned off when you leave.
They understand empathy and the concept of a carbon footprint, but don't consider them when it comes to decision making. In my experience, it is as if it isn't a variable in the equation.
High school was populated by people "doing their time", who wanted to get by doing as little as possible, thought it was cool to be disruptive, cut classes, etc. They definitely dragged the whole thing down for the others.
College was different. People paid to be there, the work was hard, people wanted to be there and would take the hard classes to get their money's worth. There weren't any disruptive students.
What a difference.
I studied in a university in a country where you have a dual-track system - either you get in for free, but have to pass a far more rigorous exam (since you're competing against everybody else who is trying to get in for free), or you pay and get your spot. The people who paid their way in - or rather, whose parents paid their way in - tended to do that "doing their time" thing you described. The people who were studying for free were far more determined to make all the efforts that they had to put into passing the entry exam worthwhile.
My shoes started lasting several times longer. I was still a child.
My dad didn't think of this himself. The Army had the same problem with combat boots, and solved it by having the GIs pay for their boots.