Country captivated by pyromaniac (7)
I believe the answer is:
romania
'country' is the definition.
(European country)
'captivated by pyromaniac' is the wordplay.
'captivated by' indicates a hidden word.
'ROMANIA' is hidden within 'pyromaniac'.
(Other definitions for romania that I've seen before include "East European country" , "EU country" , "Oman air in the eastern European state" , "Country of eastern Europe" , "I'm Aaron in Europe" .)