Disagree. BTC-e and Bitstamp (both European) combined have some significant volumes, larger than either MtGox or BtcChina.

And that's just BTC/fiat trading. As for Bitcoin-economy itself, it's booming here in Europe. Germany accepted Bitcoin as an official currency (obviously with taxed in mind, but hey, legislation is a good thing to grow!) and Berlin is becoming the "Bitcoin capital of Europe" with new businesses (not just online, but actual shops, bars, etc) accepting Bitcoin appearing almost daily.