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EU wants over 70s to prove they can still drive every five years
(www.brusselstimes.com)
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They can increase or lower the legal age of their own licenses but they have to recognize licenses of other EU states that are lower than their own legal age but but above the EU legal age. Other EU member states do not have to recognize the lower legal age licenses, though they can.
This of course is decided by the EU for EU member states.
I doubt it is true, US licenses without an IDP are not permitted in the EU and while many small rentals will rent to US tourists if those tourists get involved in an accident or otherwise have to produce a license to the authorities.. it won't go well.
That would be because the US is not an EU member.
https://en.wikipedia.org/wiki/European_driving_licence
It is obliviously not decided by the EU, it's decided by local law.