European city needs empty road developed (7)
I believe the answer is:
dresden
'european city' is the definition.
(city in Germany)
'needs empty road developed' is the wordplay.
'empty' means to remove the middle letters.
'developed' indicates an anagram.
'road' with its centre removed is 'rd'.
'needs'+'rd'='needsrd'
'needsrd' is an anagram of 'DRESDEN'.
(Other definitions for dresden that I've seen before include "Saxony capital" , "that was notoriously fired" , "Fine china named after German city" , "Send Red out to the German city" , "Decorated china" .)