I did this in August, for a whole month - been in Spain and Italy, among others. Even though I spent most of my time driving in my car, I slept on campings and on road side parkings. There are thousands of campigns anywhere - it's a very popular way to spend holidays in Europe. You will find a camping in every bigger town in the EU countries - especially Spain and Italy. The prices vary. We travelled in a car and there was four of us - the cheapest we payed was 12E per day in inland France, while Spain cost around 25-30E (though these were very nice campigns right next to the beach). We also slept on roadside parkings - there's one every 20 km or so. They're a bit messy, and there's no toilets or showers, and it's illegal really, but we never got bothered by the Police and scenery was strikingly beautiful. Keep in mind that until you're not setting up a tent on the roadside, you're save. Heck, in Italy we were invited for breakfast by people who worked near the place we slept (it was a parking lot). It's also worth noting that setting up tent in Spain in places other then campings is legal, just not next to highways and larger roads. Italy offers many forests and places where you won't be hassled by anybody, especially north, in the Alps. I haven't seen any small, cheap hotels ANYWHERE, though it was something I counted on. Shoddy roadside hotels cost around 60-80E for a two person room, so that was expensive. Also, there's a hotel chain called Formula 1 (I think it's part of the Accor Hotel group) in Germany and France (possibly in other countries, though I can't say for sure). These are fully automated, so you don't deal with clerks or anyone like that, and their cheap - 30E regardless of what kind of room you take (1,2 or 3 person rooms are available). If you've got more questions, fire away. As for EU vs. US, it's much safer in the EU.
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