You will not be able to use it in Europe because it is CDMA only. It is an unfortunate limitation. It may be possible to reactivate your current phone before going to Europe or Verizon will lend you a global phone for up to three weeks.
Yes, only a handful of Verizon phones can be used in most international locations, these are clearly marked as "Global" phones, and come with a Vodafone SIM for use in GSM countries, which is most of the world. (Verizon states that the CDMA phones can be used in more than 35 countries vs 220 for the global phone).
Apparently, Verizon doesn't consider global phones a top priority, possibly because many Americans don't travel abroad much (many of the common "near" destinations are at least partly CDMA). See other threads on the ending of the Global data plan, so that using these phones abroad will be very expensuve!
Most of the Global phones are Blackberries, with two Androids, Droid 2 Global and Droid Pro.
Some reports claim the iPhone 5 will be dual-mode, but so far that is just a rumor.