http://www.uefa.com/uefaeuro/news/newsid=2191264.html EUFA are going to set up a nations league with relegation and promotions to replace friendlies.
One advantage that I can see for this is that smaller countries will play each other...must be better for their development not to lose every game. There will be 4 leagues (A-D) but the 12 countries in League A for instance (where England will be) are subdivided into 4 groups of 3 (so you play more games if you are successful). There will be a trophy and a place in the European Cup up for grabs.