Belgian town in European country (5)

I believe the answer is:

spain

'european country' is the definition.
(Spain is an example)

'belgian town in' is the wordplay.
'belgian town' becomes 'spa' (**).
'spa'+'in'='SPAIN'

(Other definitions for spain that I've seen before include "European country" , "Country bordering Andorra" , "It pains one to be out in this country" , "Pains badly to be in the country" , "Take pains to go there" .)

I've seen this clue in The Times.

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