No body 'governs' Europe at all. It is a continent made up of many different countries.
There is no simple answer to that, as it was doing many things. However, the most important thing in Europe at that time was that World War I was in its final year.
In 1918 Europe was rebuilding after the First World War.
In 1918 Europe was left in a state of ruins.
Blackjack Pershing.