European taking Englishman around second English town (5)
I believe the answer is:
epsom
'english town' is the definition.
(I've seen this before)
'european taking englishman around second' is the wordplay.
'european' becomes 'E' (abbreviation e.g. EU).
'taking' says to put letters next to each other.
'englishman' becomes 'pom' (pom is a kind of englishman).
'around' indicates putting letters inside.
'second' becomes 's' (common abbreviation).
'pom' enclosing 's' is 'psom'.
'e'+'psom'='EPSOM'
(Other definitions for epsom that I've seen before include "Poems about English Derby venue" , "Surrey racing town" , "Derby race track" , "Classic racecourse" , "Town with racecourse" .)