The wikipedia page also has an animation showing how it works.
To travel to Europe you need to fork out the full fee for a "real passport" rather than the cut-price national-ID card -- most other Europeans can just make do with a national ID card. Or wait -- that might be because Britain is one of the few countries that still does border controls for travel within Europe. Travel north-south from Germany to Holland to Belgium to France to Spain to Portugal and the only thing you notice is the language on the road signs changing, the borders are notionally still there but no checks are done. Im not sure the current system really is that much better.
From your e-mail address I am guessing you are German, you speak/write English -- so you could probably take your pick from at least Austria, Holland, Germany, Swiss, Norway, Sweden, Finland, UK, Ireland or Belgium without running into great language difficulties.
A good university would have a placement officer that can help you out and would already have some contacts in place. Start early, ask around, keep asking.
If you are looking for the sexy internet companies like Google or the like -- most of them have european offices that also do interesting things down here.
Good luck!
Honesty is for the most part less profitable than dishonesty. -- Plato