Most european countries use very comprehsensive exams that govern not only admission into top universities, but are tied into being able to get a job AT ALL in a certain profession.

Basically - the countries have a number of slots for a profession they are looking to fill or that they expect demand for. They create that many university places that create eligibility for the position. Getting into these spots can be ridiculously difficult and the standardized exam is weighed MUCH MUCH more heavily than in the US (with it's "holistic" approach).

Whether or not this merit based / tracking based approach (which actually starts earlier in high school and before for many countries) is what leads to excellent outcomes is a question. But the tradeoff with free education is that the really expensive education has lots of criteria before you get it for free.