Wait what does Europe do? Just genuinely curious, and a cursory google search didn't return anything.
Otherwise, offline you place it into a card reader and enter a PIN. The card then authenticates the transaction only if the PIN matches. The card stays within the reader as you enter the PIN.
Further reading,
I can confirm, when I first came to the UK four years ago, only major retailers seemed willing to accept my Canadian CC, and even then, the cashier usually had to call the manager to confirm that it's ok.
Another thing I have to credit Europe with is the lack of proprietary debit card systems like Interac or Plus. It's all done via Visa/Mastercard Debit, so you're never forced to do your online shopping on credit.