Why do you think that is? What would you consider a European masterpiece? And what would you consider something that falls short from outside Europe?
If we are sticking to the CRPG theme. Then the Witcher 3 and Divinity: OG 2, BG3 and Disco Elysium would be the obvious choices. If you told me in beginning of 2010s all of the future hits in this genre will come out outside of US and Bioware/Obsidian will fade away, I would be quite surprised (but maybe shouldn't have, considering their owners and financial situations)
As many have mentioned, BG3, CDPR's Witcher and Cyberpunk 2077 franchise, Remedy's Control / Alan Wake franchise (both original IPs) to name just a few. DICE (within EA) comes from Sweden and it's responsible for EA's core Frostbite engine alongside its Battlefield franchise.
I cannot point to the reasons as to why. Many of these teams are global teams - so a lot of the same problems apply: marketing costs/timelines, release-time crunch etc. The one difference I can point to is that perhaps executive payouts are not overly dependent on total shareholder returns.
The Kingdom Come: Deliverance games from Warhorse Studios and the Witcher franchise from CD Projekt Red (both Polish) are excellent and have won a ton of awards
Lots of non EU games fall short, including several mentioned in this thread, e.g. Anthem
The Witcher 3, Any GTA game
CDPR is probably the flagship studio in Europe. Interestingly, they are probably the modern studio that most resembles Bioware in the 2000's.
Valheim, Enshrouded. Each sit at the peak of the genre, IMO.
European masterpieces, recentish:
This is subject to taste, but the games I've been personally enjoying the most are almost all European. US games are comparatively mediocre. I don't have an explanation; only this observation. I was startled when noticing it.Most recently, I'm loving Order of the Sinking Star, and that's from a US team. There's hope!