They don't control the rest of Europe (though right now with the Euro situation they probably just about do), however there are provisions for legal precedent in one Member State to apply in every. I have no idea how it works and when it applies, though. It's definitely not so direct as in the U.S.
Courts in Europe are not precedence-based. At least not in all countries. Here (Poland) there is no such thing as precedence in courts, not to mention basing a verdict on precedence in foreign court.