European fuses creating issues (7)
I believe the answer is:
emerges
'issues' is the definition.
('emerge' can be a synonym of 'issue')
'european fuses' is the wordplay.
'european' becomes 'e' (abbreviation e.g. EU).
'fuses' becomes 'merges' ('merge' can be a synonym of 'fuse').
'e'+'merges'='EMERGES'
'creating' acts as a link.
(Other definitions for emerges that I've seen before include "Turns out" , "Comes out" , "appears" , "Issues" .)