Europe is in many respects more market oriented and capitalist compared to the US. This is entirely not the issue.
And, I'm not sure why I need to spell this out to you, but both public and private life in Europe run on money that has to be generated by a healthy economy, which, we cannot expect, when Europe stops being competitive with respect to the US and China.
Thinking this is just about tech salaries is very first order thinking.
EDIT: Maybe I should add some context, and I'm sorry if I come off a bit condescending in my reply to you. We are facing governments who have no clue how to solve our economic woes, but who certainly have a plan on how to act: austerity measures. So all those nice things you associate with the European economic model are precisely the things that might cease to exist.