The most common and most likely answer to this crossword clue is the 7 letter word ANTWERP
I've seen this crossword clue in The Times
A
N
T
W
E
R
P
More clues leading to the result ANTWERP
- Developed new part for European city
- An ass somewhere in Belgium
- Belgian city’s exotic new part
- New part exchange arrangement in Belgium
- An idiot's place in Belgium
- A nationalist idiot in Belgian city
- Soldier possibly joins wife before heading back for port
- Drunk went inside almost respectable pub to start with port
- City created by an idiot
- Port went off, in a manner of speaking
Buddy explains!

The straight part
We know that "European city" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case european city = antwerp.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.