While € is valid XHTML entity it is not valid XML one.
Unfortunately, I don't know anything about JDOM, but if it is possible you may try adding DTD entity declarations like <!ENTITY euro "€">
. And, maybe, put all XHTML tags into their proper namespace (<parentNode xmlns:x="http://www.w3.org/1999/xhtml"><x:b>...</x:b></parentNode>
)