The European Grand Prix is already being dropped. Valencia and Barcelona will share the Spanish Grand Prix, starting next year.
And I don't believe that Valencia is so bad that it cannot be saved. If, for example, they could cut the final sector out entirely and link Turn 12 up to the main straight, it could be a very interesting circuit. Especially if they could fix the chicanes in the first sector.
Elsewhere, Joe Saward is also reporting that the 2013 calendar could have 23 races on it. The current Concorde Agreement is believed to have 17 races, with a provision for three extra; the new Concorde has been reported as guaranteeing 20 races, with a provision for "several" extra. With Valencia and Barcelona sharing the Spanish Grand Prix, that means there are current 19 races on the calendar. The addition of New Jersey makes that 20. Mexico and Argentina have talked up joining the calendar, which takes it to 22, and while the French are interested in joining, they want to alternate with Spa - which leaves the calendar at 22, and naturally begs the question of where the twenty-third race would be.