European capital to develop a teaser? (8)
I believe the answer is:
budapest
'european capital' is the definition.
(capital of Hungary)
'develop a teaser?' is the wordplay.
'develop' becomes 'bud' (budding is a kind of developing).
'teaser?' becomes 'pest' (I've seen this in another clue).
'bud'+'a'+'pest'='BUDAPEST'
'to' acts as a link.
(Other definitions for budapest that I've seen before include "city of Europe" , "capital location" , "Hungary's capital" , "Put beads in the European city" , "Ernest Laszlo's birthplace" .)