Gossip surrounds party on Republican right in state (7)
I believe the answer is:
andorra
'state' is the definition.
(I know that Andorra is a European country)
'gossip surrounds party on republican right' is the wordplay.
I cannot quite see how this works, but
'party' could be 'do' (do is a kind of party) and 'do' is present in the answer.
'republican' could be 'r' (political abbreviation) and 'r' is present in the answer.
'right' could be 'r' (common abbreviation) and 'r' is found within the answer.
'gossip' could be 'ana' (I have seen 'literary gossip' mean 'ana' so perhaps 'gossip' could also mean 'ana') and 'ana' is found in the remaining letters.
This accounts for all the letters.
This explanation may well be incorrect...
'in' acts as a link.
Can you help me to learn more?
(Other definitions for andorra that I've seen before include "Semi-independent country in Pyrenees" , "Principality in SW Europe" , "ditto" , "Catalan state" , "Pyrenean country" .)