The most common and most likely answer to this crossword clue is the 4 letter word OSLO
I've seen this crossword clue in The Times
O
S
L
O
More clues leading to the result OSLO
- Starts to observe swinging London, our capital city
- Capital letters, initially and finally, turning up in ciphers
- Capital found once in Czechoslovakia
- Loos redesigned for European capital
- Some yobbos looted European capital
- City of Scandinavia, large one principally
- Heads for old southern lake or city
- Sailor on watch in European port
- Foreign capital aficionado slowly collects
- Endless industrial action in Norwegian port
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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.