Courts imprisoning you and me in part of Europe (7)
I believe the answer is:
austria
'part of europe' is the definition.
('Austria' is part of 'europe')
'courts imprisoning you and me' is the wordplay.
'courts' becomes 'atria' (atrium is a kind of court).
'imprisoning' is an insertion indicator.
'you and me' becomes 'us'.
'atria' going around 'us' is 'AUSTRIA'.
'in' acts as a link.
(Other definitions for austria that I've seen before include "Find US tiara in this country" , "Republic of central Europe" , "Central European country" , "EU member" , "US tiara to be found in this country, oddly" .)