Land of misguided laity (5)
I believe the answer is:
italy
'land' is the definition.
(I know that Italy is a European country)
'misguided laity' is the wordplay.
'misguided' indicates anagramming the letters (letters guided into the wrong places).
'laity' is an anagram of 'ITALY'.
'of' is the link.
(Other definitions for italy that I've seen before include "Mediterranean country" , "Land of Tuscany and Umbria" , "South European country" , "Catholic country" , "Southern European country" .)