Vanguard is operating in Europe... I guess, if they could offer cheap funds they would do so, but they don't.
One reason could be that "Vanguard Europe" is impossible. There's Vanguard Ireland. Europe isn't a single country like the US, it's dozens of independent countries each with their own tax code, banking systems, retirement approaches, etc. They would need an office in every country making each submarket rather small.
Then there's a lot of regulation of the banking sector here. It might be more expensive to administrate a fund with the extra restrictions.
Not all countries in Europe are heavy investors. Germans, for instance, tend to keep money in a cash account, that's 20% of the European market. Not sure about other countries, but right now I doubt that investing in the stock market is the first choice for many in the Mediterranean countries. Unemployment rates for young people soared to almost 50%, and it's still very high in the group between 30-40, the group that bought a house in the boom, funded a family and is now broke.