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Jeff Hardy was the last one seen holding the WWE European Championship. Then, on Eric Bischoff's first RAW as General Manager he said RVD and Hardy will unify the two belts into the Intercontinental title in a ladder match. Jeff Hardy never brought the European title down to the ring, nor was the European title hanging up with the Intercontinental title.
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So, Jeff Hardy most likely got high somewhere and the belt is around the waist of some drugged out drug dealer who thinks he's the champion of Europe. Then the WWE had to make a quick decision to scrap the title because Jeff lost it somewhere.
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