European inhabitants love new clothes (7)
I believe the answer is:
slovene
'european' is the definition.
(someone from Slovenia)
'inhabitants love new clothes' is the wordplay.
'clothes' indicates the answer is hidden within the clue (the letters clothe the hidden word).
'SLOVENE' can be found hidden inside 'inhabitants love new'.
(Other definitions for slovene that I've seen before include "One from Ljubljana" , "Central European" , "Language" , "Southern European" , "Native of Ljubljana" .)