You could live in a country like Thailand for that money but Europe is more expensive. However, you can rent an apartment in some parts of Spain for a few hundred euros a month (but it does require 2 months refundable deposit) and cook your own food in the apartment. You'd have a fridge as well.
Spain is a cheap Ryanair flight away (via shuttle bus to Beauvais airport).
BUT I don't know about July and August as they are the two most expensive months of the year in Europe because the kids are on holiday. I think you would have to go somewhere like Morocco or Tunisia for that (get away from the big cities and the small towns are quiet, and short of tourists this year).
this is total madness. i wouldn't even attempt it. unless u could work part-time somewhere. but that's provided you wanna spend time doing part-time work. i'd advise u to cut down on the length of your trip, otherwise consider going elsewhere like asia, where 2000 euros is quite plenty for 3 months (again, not big cities like hongkong or singapore where things are pretty expensive).
unless u're prepared to really stick to ur budget of 22 euros a day and sleep outdoors on certain days whn u have no budget for accommodation, and perhaps eat bread and canned food all ur days there... i think u're in for a rough time. i'd rather cut down the time, and allow myself to enjoy it a bit more. after all, europe does have a lot of great sights and cuisines. u don't have to fine dine to eat good food, but eating bread n canned food all 3 mths is just... sad. and pointless.
HOWEVER. tips. hitchhiking around cities is an option if u wanna travel around morocco. and if u could work it out, couchsurfing for accommodation. although i don't know anyone who allows people to couchsurf for 3 mths - that's a long time yo.
hmmm. i heard eastern european countries are a bit cheaper? but i haven't been there so i wouldn't know.
all the best. let us know how it works out.
[ Edit: Edited on 21-Jul-2011, at 00:36 by daphnemaia ]
Your plan is ambitious, but I believe it is possible. I've lived in Slovenia with a lower budget than 20€/day. It all depends on how much you're willing to compromise. There, it is rather cheap to eat in restaurants and hitchinking is not that difficult.
To cut done your expenses I'd say:
1) Get there sharing a ride:
2) Get free accommodation as much and as long as possible:
3) Find out about free activities and friends to share it with you. -snip-
If you do so, please tell us all about it. I hope you make it
[ Edit: Sorry, no promos please. ]