I wasn't aware. It's meant to refer to every country having a different solution for the same thing, which in the EU is much the case.
That said I picked it up from Steve Jobs talking about cable networks in the US.
That conveniently ignores the part where it refers to a fracturing where every part is hostile towards each other and unwilling to cooperate on anything. It's not a neutral term, it really is a rather offensive term for everyone from the Balkan today.
It's a historical reference to the events that led to World War 1.
No, it is not. Etymology and current use are not the same thing.