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1. What is to be done to bring Europe back to being one entity and focussed as it was before.
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First of all EU needs to stop arguing. they must get one currency and all nations in the EU must except the EU constitution that has been drawn up.
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2. What is to be done to Russia so that it does not feel that the West is attempting to encircle her as also diminishing the natural leadership of Russia over the erstwhile Soviet states?
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Give the space to manoeuver and perhaps the world should stop interfering in Russian internal affairs.
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3. How can the European economy be brought to work in tandem with the US economic goals?
Good question. Even if the US and European countries are friends they are very different in leadership, culture you name it.
Perhaps something simple would help. They produce what we needs we buy or vice versa.