The Powder Keg of Europe   The southeaster area of Europe, the Balkans, was called The Powder Keg of Europe because of the nationalistic spirit that was causing revolts … and rebellion in that area prior to World War I. It was where the Great War, World War I, began with the assassination of Archduke Ferdinand.he nations that were in the Powder Keg of Europe were Russia, Ottoman Empire, Austria-Hungary, Germany, Great Britian, and Italy.